Hi everyone, Time to hold my nose and dive into the water.

Probably a silly question and the answer is right under my nose but: how does it work when you purchase a “tear down”.

We paid thru the nose to have plumbers complete the work, but since we have them work on all things thru the year we were bumped up in priority.We had an investor friend who was not proactive. 

Thanks David, good to hear from you as well, long time no see. 

Looking back on my life, the opportunity was there right under my nose and I ignored it.

Landlords are still able to increase rent at a certain percentage per year with a formula of 7% plus CPI, which this year that number comes out to be 9.9%.Gone are the days of a landlord being able to buy a multifamily, kick all the tenants out within 30 days, rehab, and then stabilize without having to induce minor brain damage and pay out of the nose for relocation fees. 

So, the taxes will (generally) be less, and (generally) no SE tax will be owed.But remember, the IRS is going to look at both the duration of the holding and the intent.

Most communities have regulation against rooming houses, usually landlords run afoul of it, but in some cases, tenants turn them into rooming houses under the noses of the landlord, making money hand over fists.That's why I prefer 2BR's, renting to a couple or two roommates.

We must begin to think outside of the box.Number 1 resource for financing our deals is usually right under our noses and we fail to ask.

So buy smart to avoid an area or property that section 8 folks will turn up their nose at.