Since the 1031 exchange failed, you’ll owe taxes on:Depreciation recapture (~$112K) taxed at 25%.Capital gain (~$80K) taxed at 15–20%, depending on your income.To offset the depreciation recapture, you’d need passive losses.

Below are the 6 most common reasons out of state investors fail.1.

This analysis makes 2 assumptions: 1 - the syndicator/sponsor is HONEST and not a scam, and 2 - the syndicator/sponsor is competent in investing in the subject  area of real estate So assuming these 2 conditions are true, what is the biggest syndicator “fail”.  

Hi! What’s the minimum a partner needs to do in an LLC (owning rental property) to be considered active enough to avoid it being labeled an investment security under the Howey Test?

What are some of the biggest mistakes you often see new investors make that cause them to fail out of real estate investing? 

Smart locks are becoming more common in rentals, especially short-term and multifamily units.Pros:No need to rekey between tenantsCan grant/revoke access remotely (great for maintenance or showings)Access logs for added securityTenants like the convenienceCons:Dependence on batteries or Wi-Fi—can fail if not maintainedSome tenants may be uncomfortable with perceived privacy concernsHigher upfront cost and potential for tech support issuesIf the system fails, physical access could be a problemFor long-term rentals, a keypad lock with manual override might be a better balance—still allows for code changes without rekeying, but avoids some of the tech pitfalls of smart locks tied to Wi-Fi or apps.Whatever you choose, just make sure there's a backup access method and clear communication with tenants about how it's managed.

They promised me a 1031, they have never failed one out of 1000 houses, blah blah - I have this in writing.

A hunger to learn how to do things the right way, a teachable spirit and am unafraid to fail as long as it's failing forward! 

.: I invested in three Blake Capital deals (at the time they were doing business as the Djuric Family Office): - Canopy Creek Apartments, Jacksonville, Florida (Mar 2021-Dec 2021); ended quickly with a moderate return on investment - Waterford Grove Apartments, Houston, Texas (Mar 2021-Dec 2023); failed resulting in a MIPA and total loss of all investor funds. - Park North (aka Life at Spring Estates), Houston, Texas (May 2022-Dec 2024); failed with a foreclosure & total loss of all investor funds. 

So I just went at everything with this "fck-it" mentality completely fearless of failing and, honestly, expecting I would fail a whole hell of a lot.