Whether it’s for primary, secondary, or investment use, the buyer still has to qualify with the lender based on their own financials, and that’s where the real hurdle can in.

I qualify for a VA loan but my question centers on the requirements. 

Assembly Bill 1771, also known as the California Housing Speculation Act, aims to change real estate tax policy to discourage investors from quickly reselling properties like single-family homes.Under the proposed bill, an additional 25% tax would be imposed on the gain from the sale of a qualified asset (including homes) within three years of the previous sale.The tax reduction is dependent on the number of years passed since the initial purchase of the qualified asset, ranging from a 20% reduction for sales occurring between 3.01 to 4 years to a 100% reduction for sales occurring more than seven years after the initial purchase.The revenues generated by this tax increase would be deposited into the Speculation Recapture Community Reinvestment Fund, which aims to support affordable housing, local governments, schools, and infrastructure projects.The bill is introduced by Assembly Member Ward, and the proposed tax changes would take effect from January 1, 2023.Assembly Member Ward argues that short-term investors in the market, including fix and flip investors, contribute to rising housing prices, limiting opportunities for Californians to purchase homes.While the bill may discourage short-term speculative transactions, it is worth noting that California's tax laws still provide certain advantages for investors, including unlimited tax write-offs and depreciation benefits.The bill is subject to legislative approval, and Assembly Member Ward will speak publicly about the bill at the San Diego County Administration Center on a specified date.Please note that this is a simplified summary of the bill and its potential impact on fix and flip investors.

: DSCR loans are designed for real estate investors, allowing you to qualify based on the property's cash flow rather than your personal income.

Don't expect the best DSCR rates for this property use as your pricing will get adjusted for this type of use.Commercial financing is also available for such uses, but can be more difficult in terms of cost and qualifying. 

The DSCR loans seem much easier to qualify for, but perhaps there are other loan types out there that are less expensive and also aren't a root canal?

As long as you have the knowledge, drive, and a great/qualified team to work with, you can find success in most places.

If you sell it for $800k, you have a capital gain of $75k ($800k - $725k).Capital gains taz is usually lower than ordinary income tax, but since you don’t qualify for the 2 out of 5-year exemption, you’re looking at paying full capital gains taxes.

Have you spoken with a lender to see what you'd qualify for?

We have run a cost seg study on the property and qualify for 80% bonus depreciation.