Combine §121 tax-free exclusion on the residence portion with §1031 deferral on the rental portion — same property.
For a home used partly as primary and partly as rental (or converted primary), Revenue Procedure 2005-14 permits combining §121 (exclude up to $250K/$500K on primary-use portion) with §1031 (defer gain on rental-use portion into like-kind property). Requires basis allocation and separate use tracking. Powerful for homes with detached rental units, ADUs, or homes converted from primary to rental. Complex — dedicated CPA required.
Click Generate advisory deep dive for mechanics, IRC citations, a step-by-step execution plan, a worked numeric example on your profile, costs, risks, and this-week actions.
Buy, Rehab, Rent, Refi, Repeat — recycle capital infinitely.
Recession-resistant cash flow with fragmented mom-and-pop sellers.
Exit landlording without paying cap gains.
Buy a 2–4 unit with 3.5% down, tenants pay your mortgage.
Buy, Rehab, Rent, Refinance, Repeat — with 100% OPM.
Renovate while living in, sell tax-free every 2 years.
Zero capital, zero credit — flip contracts for $5–25k each.
Rent apartments, sublet to travel nurses at 2–3× rent.