IRS CP2000 Notice: Why Real Estate Investors Need to Think State & FederalQuick story that could save you thousands in tax exposure...Had an investor client who received a CP2000 notice for unreported rental income.

Similar to you I was doing well in real estate, had 3 cashflowing properties as well as my primary home and then thought it would be a good idea to flip some early 1900's homes.

Since your property has high resale potential, some lenders may be willing to work with you.Cash-Out Refinance – If you’re open to refinancing, you could take out a new mortgage for a portion of the home’s value (say, 60-70% of the $500K), and use the cash difference for renovations.Personal Loan – If you have good credit, you might qualify for a personal loan for part of the rehab costs, though interest rates are typically higher than secured loans.Partner with an Investor – Given the potential profit, you may be able to find a real estate investor or contractor willing to finance the rehab in exchange for a share of the profits upon sale.Your best option depends on your financial standing, timeline, and risk tolerance.

We’re excited to begin our real estate investment journey in 2025!

This experience will help you prepare for more complex real estate deals in the future.

I am the Chairman of the Wicosnin Real Estate Investors (formerly WAA) we do the lobbying on behalf of the Wisconsin landlords at the state level. 

It is hard but as a realtor I pay attention to prices throughout the year so that I have an idea of whether or not it is a "real" discount.

One of the other factors that kept me from pulling the trigger is that the city has never passed any real STR regulation.

I started as a real estate investor in Philly, but was disappointed with the GC's a subs I was finding. 

Building a real estate portfolio might be attractive, but if you're crunched for time, perhaps you could do private lending in a SDIRA or get into syndications.