We own a 4-plex that is fully rented.* We have permits to remodel one of the units and expand it from 500ft2 to 1,500ft2 at a cost of about $200,000.
When construction is completed we will move in and owner occupy the expanded unit.
If we live there for 2 years, and then sell the entire building, how will that play with a 1031?
Will we be able to cash out a portion of the net profit that is attributable to our personal residence and then 1031 the rest?
Of so, how should we calculate the split amount?
How do the rehab costs figure in?
Anything else I’m* missing?