As Andrew indicated, the bottom line is you are still selling a single family residence, not a business.

I've seen this a lot as a strategy to ensure payment(gov subsidies).

So doing a 1031 will only reduce your tax bill from $7,500 to $4,500.

Without a doubt, the #1 factor that you want to consider is your choice of contractor.

@Adam Graziano I would say a lot of it is based on their training or their resources that they utilize to complete your taxes.

My goal is to create something real and long-lasting — not just flip a deal and disappear. 

With that being said, if you have a clause about peace and quiet as a condition of renting one of those rooms--those roommates HAVE to abide by them. 

I usually also recommend a full roof inspection, and a sewer lateral inspection.

I believe I'm about to get an insurance claim approved due to "storm damage" for a roof/siding, gutters, and shed for the duplex i currently live in (no actual major issues, just justified repairs based on what the roofing/siding company reported). 

Purchase price: $73,000 Cash invested: $350,000 I have created a sustainable farm with short and mid term rentals What made you interested in investing in this type of deal?