I like what @Rick Albert mentioned about the passive opportunities that qualify for 1031 exchange treatment.

I’ve been treating the baseboards inside too.As a landlord, I plan to keep spraying around the property and do interior treatments every six months during walkthroughs.

This is what ChatGPT said about it.IRS Code § 831(b) refers to a special tax provision under the Internal Revenue Code that applies to small insurance companies, particularly “micro-captive insurance companies.”Here’s a plain-English summary:IRC § 831(b) - OverviewWhat it does:Allows small insurance companies to elect to be taxed only on their investment income (and not their underwriting income, or insurance premiums received).Key Features:Eligibility Cap:As of recent updates, to qualify under § 831(b), the insurance company must have annual net written premiums or direct written premiums that do not exceed $2.8 million (as adjusted for inflation).Election Required:The insurance company must formally elect 831(b) treatment with the IRS.

We are looking into the Carolinas, Tennessee, Missouri, and Ohio at the moment; doing our best to stay away from natural disasters or other issues that could affect insurance and other subsidiary expenses.We would love some advice, either by replying to this post or willing to hop on a call.

My background blends wellness, landscape architecture, and nature-based design.

Bitcoin does not qualify.However, if you're looking for more passive opportunities to invest, there are a few syndications that qualify for 1031 exchange treatment, such as 721 UPREITs (Real Estate Investment Trusts) or DSTs (Delaware Statutory Trusts).

You must hold the property over one year from the deed transfer date to qualify for long-term capital gains treatment (lower tax rate).Even though you invested in the tax lien earlier, the IRS doesn’t consider your holding period to begin until you gain full ownership through a tax deed.

Here’s how:Rents adjust: Over time, rental income tends to rise alongside (or above) inflation, offering natural protection.Fixed debt, rising value: While your mortgage payment stays the same, property values and rents climb—widening your margin.Tangible asset resilience: Unlike stocks or crypto, real estate is a physical good with intrinsic demand—people always need housing.We’ve seen this firsthand across the Baltimore Metro area.

I want to ensure this is done in a way that complies with California law, avoids triggering partnership tax treatment, and doesn’t lead the IRS or courts to recharacterize the arrangement as equity.

Purchase price: $500,000 Cash invested: $2,500,000 These brand-new single-family homes feature open layouts, high-end finishes, and plenty of natural light.