You have a governmental authority using its power to hinder and regulate private transactions creating some kind of “litmus” test based on god knows whatYou have a seller remaining in a home he sold indefinitely.You have a lender that has twice filed for foreclosure You have a profit sharing arrangement upon resale with the seller/tenantYou’re performing repairs/maintenance on a house while occupied by the seller/tenantAny or all these are lawsuit magnets.If you buy a property, and the seller is a consumer, not an investor, you should NEVER do a profit participation.  

These areas are not overly regulated yet, with the most restrictions I’ve run across so far being they can only STR for 120 days a year, or the rentals have to be a month at a time.

Ensure the property is tested and, if necessary, remediated by professionals.Permits and Code Compliance:Building Codes: Ensure that the restoration or rebuild complies with current building codes and regulations.

(The fact that many of these companies are not regulated custodians but unregulated administrators is a different topic, but something you should understand, research, and be wary of.)

Investing in New Builds: Considerations and ProcessNew Build Investment Options:Build and Sell (Fix and Flip):Pros: Potential for high profits with modern appeal.Cons: Requires significant upfront investment and market risks.Build and Hold (Long-term Rental):Pros: Attracts quality tenants, potential for higher rental income.Cons: High initial costs, market fluctuations.Process Overview:Market Research: Identify high-demand areas.Land Acquisition: Purchase suitable land.Design and Planning: Work with architects and obtain permits.Construction: Oversee build quality and manage costs.Marketing (Fix and Flip): Highlight new features to attract buyers.Tenant Management (Rental): Implement thorough screening processes.Advice:Educate Yourself: Understand local regulations and market dynamics.Risk Management: Prepare for potential delays and cost overruns.If you have any other questions/just want to discuss feel free to reach out to me directly!

This new regulation aims to increase transparency in the real estate market and protect buyers from potential issues with recently renovated properties.As a fix and flip investor in California, I'm curious to know how this new legislation is affecting your strategies and operations.

There are strict rules and regulations in Shaker Hts. and a lot of the other cities and suburbs.

If you meet this regulated threshold at the end of the year, an IRS 1099-K tax form will be provided to you."

STR regulations and taxes are becoming harder there, and properties are pretty expensive!

Compliance - Check and keep up with all regulations, rules, taxes, insurances, everything!