Purchase price: $317,000 Cash invested: $55,000 I acquired a Quadplex in 2021 with an FHA loan, investing ~$21,000 in down payment and closing costs, plus $30,000-$35,000 in remodeling.

The main thing is making sure your investments produce a return that outweighs the cost of the borrowed money.A full cash-out refinance could work down the line, but with rates where they are, you’d be trading a 6.25% ARM for something likely higher, now that it is not an owner-occupied property, which may not be worth it unless you really need the capital to scale.

@Matthew McleanBigger Pockets is a great place to find an accountant specializing in real estate taxation.A good real estate accountant can save you thousands of dollars by leveraging entity selection and formation, tax deductions, cost segregations, bonus depreciation and tax planning.I recommend finding an accountant specializing in real estate taxation, business taxation, financial planning and tax planning.Consider working with your accountant remotely to expand your options.I would also recommend looking for an accountant willing to work with you throughout the year.

@Jordan BrownSince Orange County and Santa Barbara have high housing costs, using an FHA loan for a house hack could be a smart move, allowing you to put less money down while securing a property.

Our rehab cost estimation comes from researching the area and talking with local investors that have similar properties. 

These products allow you to purchase a home that may need some work and roll the renovation costs into your mortgage. 

Alternative strategies include tax-loss harvesting to offset stock gains, using cost segregation and bonus depreciation for real estate deductions, or deferring real estate capital gains through a 1031 exchange.

the value added versus cost to add, especially in single family zoned areas, typically results in a large negative initial position.  

You should also request a personal financial statement to better understand their financial health and proof of funds to confirm they have the liquidity for down payments and closing costs.

That is what 1% of the $40,000 down payment costs were from when we refinanced it and started this process in Jan 2022.