Payments that you make normally fall into one of 3 buckets100% of the payment can be factored in somewhere on the returnPartial payment can be factored somewhere on the return0% of the payment can be factored in somewhere on the returnHouse-hacking also has considerable tax implications in the event that you want to sell this property.You can potentially defer a portion or all of the gain on the investment property with 1031 exclusion.You can potentially exclude a portion or all of the gain on the personal residence with section 121 exclusion

If I put the two bed 1 bath rents for 800 that is 2400 for those ...the studio I am adding will be another 650 So 3150 for apartments ..With 13 storage units at 55 that is 715 a month but I am adding a larger 14th unit that I will rent for 150 but let's say 100 bringing the total to 815 for storage So 3150+815 =3965In a cap rate appraisal you exclude the mortgage, tax, insurance and cap Ex So expenses are ..Heat 200Water 75Trash 75Landscape/snow 75Repairs 120Vacancy 120Miscellaneous 200That's 865 in expenses but let's say 900So 3965-900= 3065 in profit (noi) x12 months in a year=36780You divide that by the market cap rate..which I am going to use the most recent data of 7.45%36780÷0.0745=493,691can't be right.

Deal Deep Dive >>Purchased Home Price: $420K Remaining Mortgage: $300K (3.85% APR)Home Value today: $700K Mortgage Payment (includes taxes + insurance): $2,200Rental Income: $3,350Scenario 1: Sell the home in the next 1-2 years to be able to exclude the capital gains from our income, and find another property to purchase with the proceedsScenario 2: Keep the home and Refi.

I am netting around $20,000 per year, excluding maintenance. 

As far as criminal records I usually exclude felony applicants I know a lot of people have turned their life around but typically their are so many applicants that I can find a better option.

Are you suggesting that it makes no difference even if the ownership of four properties is under a LLC and six under my personal name and all are financed, then I am excluded?

What makes it interesting is it has several parcels of land with the sale of the house which we could probably sell off the larger parcel for about 25-30% of the total purchase price.I know the basics of Section 121 but I'm trying to understand if there is a way to extract value from our equity position in our current house to make this a better choice than finding a straight rental.Current house Purchase $215K Current Value $280-290KOwe $160k 15 year mortgage at 2.75%Mortgage + Tax + Insur $1450Possible Rent $1800-2000Possible Live-In FlipPurchase $300KRepairs ~$20k-40kARV $325-350k (excluding land to be sold off)Land Parcel Value to be sold off $80k-100kI would love to hear your creative thoughts on this situation and how I can optimize.Thanks!

@Wensheng Chen You can exclude the gain on the sale if you lived in the property 2 out of the past 5 years.

For example, a prospective tenant who occupies 20% of a shopping center has lease language stating that they will reimburse for all expenses, excluding property management.

HistoryQuestion: on average, excluding 2008, how much does the housing market drop in value during a recession?