@Dallas Smith To defer capital gains on your investment property, a 1031 exchange is an effective strategy, but the replacement property must be held for investment purposes for at least two years.

All are perfectly functional now, but could pull higher rent with replacing the flooring, and updating the kitchen.My current financing setup for this deal would be $235,000 from the HELOC I already have secured.

The house has a new roof, but HVAC and water heater replacement might be needed in the next few years.Also, mortgage rates are currently around 7%.

And we usually replaced windows/storm doors and HVAC systems within a year of purchasing older units, and this has helped as well.

Not sure about MTRs.My general conclusion was that it is tough to do business in the town if your goal is to buy property as pure rentals out the gates and no intention to occupy.

But if this is purely an investment, the high maintenance fee is a major concern.Now, let’s look at what happens in the next 5 years:Refinance After 5 Years: Assuming 4% appreciation, your property value will increase to $1,216,653.

First, the stairs leading down to it would likely need to be replaced.

The inspections have become so nitpicky over purely cosmetic items there has to be an extra $1-2k per year to keep up with the punch list every 1-2 years.

During this renovation period would you, as the lender, want an Actual Cash Value or Replacement Cost policy in place?

As a result, the few homes on the market command higher prices due to basic supply and demand dynamics.Many homeowners hesitate to sell despite potential profits, as replacing their home would be significantly more expensive.