If that’s off, even by a little, it can snowball over time and make things really messy and eventually cost you more money when you do decide to work with a CPA or if you sell down the road.One option you could try if you're not sure is having a CPA handle just that first year to get everything set up correctly (basis, depreciation schedules, categorizing repairs vs. improvements, etc.).

Look at reverse or improvement exchanges.If you need to buy first or make improvements, a properly structured reverse exchange (using an accommodation titleholder) or improvement exchange can keep you inside 1031 while solving sequencing issues.

Or, if you think there is room for improvement, you can hire a specialized bookkeeper who will bring you into their processes.Happy to discuss further. 

The other 30% either part ways with us and continue to search for a miracle or they decide to sell.Here's our standard education info to consider:--------------------------------------------------------------------------How much do you know about Property Classes?

Don’t do it just to do it.If the duplex doesn’t actually improve your cash flow, your risk-adjusted return, or your long-term strategy, then the 1031 isn’t worth it right now.

Since you don’t plan to convert the property into a rental, options like depreciation or 1031 exchanges aren’t available.Step up your cost basis: Add in eligible improvements you’ve made over the years (renovations, additions, even some closing costs).

Even then there may not be coverage unless the city forces you to remove the improvement. 

It's a genuine skill that can be learned and improved on...something I am still working on every day!

This iterative process is an effort to improve to estimate’s approximation of what is actually happening in the economy, but also means the “final” number can change multiple times.It often does.The BEA releases 3 quarterly estimates for each quarter’s GDP: the advance estimate (typically about a month after the quarter ends), the second estimate (two months after), and the third estimate (roughly three months after).

An example is a retail center we owned that we purchased for $1,200,000 and put $200,000 into improvements.