These expenses can create a paper loss, which may offset other passive income or carry forward to future years.If you qualify for Real Estate Professional Status (REPS) or actively manage a Short-Term Rental (STR), the losses can be applied against your active W-2 or business income, reducing your overall tax liability.

I'm on the Board of Directors of the Rental Owners Association of Lane County (over 1,300+ members representing over 20,000 rental units!). 

The ones I’ve come across are in areas with boarded-up houses throughout the blocks, which I’m not quite ready to invest in as a new investor.

If you intend to occupy this as a primary residence you could "assume" the loan meaning you would personally need to qualify with the existing lender to take on the loan in your own personal name. 3.

@Shelley AustinWhile it sounds great - if they cannot qualify for conventional financing will they be successful and pay you?

My biggest fear is that if I ever were to quit my job, I would no longer be able to invest in more real estate (not sure if I would qualify for loans as easily). 

We managed to navigate it, but it was a lesson in the importance of understanding both federal and state regulations.Given your location in Boston, Massachusetts, it's especially pertinent to consult with a qualified intermediary or tax professional familiar with both federal and Massachusetts state laws to ensure a smooth exchange process.

If not, wouldn't that mean the local area would no longer have eligible voucher holders looking for qualified homes once they run out of funds?

Sometimes they don’t like that because you don’t have skin in the game.As for advantages to the seller - are you going to pay them more for the property, that would be a perk that I offer in addition to making a little extra on interest for the duration of the loan.

No W2 is required for DSCR Loans - one of the main benefits as its strictly no income verification for qualifying.