By the time you will pass along your homes to your kids they will be functionally obsolescent junk in most cases.

I think you've got the two statutes combined in a way that won't work unless there's some more info.

They don't know much about the asset class, the market, or how the DST world functions!

We are of the mind (70%) to just pay the taxes and have $$ in the bank to help our kids or travel, etc. and avoid worrying about a dysfunctional HOA or a non-functioning toilet. 

However I did want to make sure that you were aware of the section 121 exclusion, which states that so long as you have lived in your primary residence for a combined total of at least 2 years of the last 5 years prior to selling it that you can make up to $250,000 profit tax free as a single individual or up to $500,000 profit tax free as a married couple under this exclusion.

I'd prefer the bulkhead as it has more functionality, but not sure if that would satisfy code to make it a "legal" bedroom.I am hoping to refinance the property after I make the improvements to get my money back out, but that would definitely require the additional bed and bath to meet code and be considered legal.If anyone has the answers here, could point me in the right direction of where to find them, or just has any advice in general, I'd really appreciate the help!

A lot of folks don't have the resources to do either, much less combining it as a home-based occupation.I agree with you that the kind of share-cropping that was practiced during Reconstruction was simply obscene, and yet another shameful chapter in our history.

Instead of making a steady state linear function think of it in terms of big ticket items:Heating unit $3000 (Every 10-15 years)Plumbing $2000 (Every 20 years)Roof $5000 (Every 10 years)Carpet 2k every 5 years....

I'm hoping its the right combination for success.

Could I then combine refi money and wholesaling capital to then buy an even better property?