Doing this will indefinitely defer paying tax on profit or depreciation recapture. 

This means you can sell, lease, or pass on the property as you see fit, just like any other property owner.Full Ownership RightsYou have the same rights as a Mexican property owner, including the ability to sell, lease, transfer, or mortgage the propertyLegal SecurityThe Bank Trust is a well-established legal mechanism in Mexico, ensuring your investment is secure and protected under Mexican law.Renewable TermsThe trust is set up for 50 years and can be renewed indefinitely, allowing you and future generations to maintain control over the property.Estate PlanningThe trust makes it easier to pass the property on to heirs, simplifying the inheritance process and reducing potential legal complications.Although the process might initially seem complex, it is entirely managed and supervised by a reputable banking entity.

At the time of purchase, I knew I might not want to stay indefinitely and at some point to might convert the home to a rental property.

And you would get to indefinitely defer all tax on the gain from the sale.

I’ve been on a journey for about eight years now, moving from a negative net worth to a modest level of wealth, with goals to keep growing indefinitely.

We do not necessarily plan to keep each of our properties indefinitely, which makes this exercise not as relevant for some of our ventures. 

You can indefinitely defer the tax and use it to purchase nicer property/properties, as well as not have to recapture any depreciation.

The hard money lender didn’t suggest going straight into a long-term rental loan, but honestly, that’s on me for not digging deeper into the options before jumping in.

If you decide to sell and find an investment property with a greater cash flow potential.A 1031 exchange would allow you to indefinitely all of the tax and use it to your advantage to reinvest into larger nicer property/properties.

This prevents evictions for non-payment of rent or a lawsuit for collection of unpaid rent for an indefinite, unspecified period.