Additionally, the limited rental period may not significantly impact the gain, but it’s essential to confirm whether any prorated exclusion applies or if the IRS rules regarding converting a primary residence into a rental property could affect the tax owed.

Hello BP community,I’m currently exploring the possibility of converting a single-family home in Philadelphia, which is zoned RM-1, into a multifamily property.

If property values are stable or increasing, your strategy might be solid.Exit Strategy Since you plan to refinance in 12-18 months, consider what happens if interest rates don't drop or if refinancing terms aren't favorable at that time.Questions you might want to askAre there any zoning or regulatory issues with converting or renting the units as mid-term rentals?

However, if the home is inherited, the beneficiaries typically receive a step-up in basis, which can minimize capital gains tax when the property is eventually sold.

Rents will continue to rise year over year if you keep up with your property and if you hold onto the multi long enough you will eventually cashflow once you decide to leave. 

**Future plans**: After a few years, we aim to put a down payment on a piece of land and move the mobile home there.Our goals are to build equity in our current house while working towards owning a nice piece of land and maybe eventually building a nice house on it.

@Bob StevensI was making an assumption that rent was not up to FMR For example in my county if you forget to ask for your yearly raises the dispersion becomes massive and eventually FMR changes can be drastic YoY for a new packet versus keeping an existing relationship.   

It took her 8 months to eventually feel comfortable selling, and by that point, she only wanted to work with me because of the rapport we built.A quick 5-minute call every two weeks or so can be a good cadence.

Even though I have a business degree from a prestigious NYC University my skill set from owning my own business for 25 years did not transfer into my eventual W-2 job or the job market itself.

@Gagandeep Singh If you analyze lots and lots of deals you should eventually turn up some that are stronger than others.