With supply tightening, 2026 could favor those who stayed patient and precise.

What I'd do in your position: Don't abandon the idea — fix the structure. (1) Get a fixed-bid contract for rehab, not draws. (2) Cap your total exposure before closing. (3) Split should be 70/30 in YOUR favor — you carry all the risk. (4) Get it in writing with a KY real estate attorney ($500-800). (5) Ask for his last 3 HUD statements.

I use the ROI calculator at calculatorica.com/finance/roi for comparing scenarios like this — plug in your net annual return against your equity to see where the breakeven appreciation rate is for your specific situation.Bottom line: the math favors holding if you believe San Diego appreciates at 2%+ annually and you can stomach the monthly cash flow hit.

Midwest markets are popular for that reason, since you can often find solid rental demand and more favorable price-to-rent ratios.

**The 8 SFH sale needs to run through a 1031 — and the timing actually works in your favor.

They used to have a Discord community which they closed down in favor of a heavily moderated chat feature.

Most likely will sell since numbers won’t work out in my favor. 

Normally, i would lean in favor of keeping the old personal residence as a rental, but in this case, I would go the opposite way. 

If your time is genuinely worth more than what a PM costs, the math usually favors professional help.

Factor that into your risk calc favorably.