I want to know is it more cost effective or easier to purchase the property alone and put it in a mortgage in our name or purchase the LLC from him that holds the property within it.

The biggest form of energy production in Tennessee today, nuclear power, simply wouldn't exist without many, many trillions in tax dollars to develop, not to mention the government stepping up to insure and protect the plants, manage and protect the waste for half an eternity, and clean up the trillion dollar mess in case of another disaster.

To leverage the equity for financing my next deal, a second mortgage seems like a more cost-effective option.

Most landlords wait for a problem to land in their lap, then they waste a ton of time thinking, worrying, researching, and bleeding money before they ever take action.

We couldn't help but improve the houses a ton, and part of us feels like it's a 'waste' to just have them rented, as it will put wear and tear on them until we do want to sell

In your case, changing the property from a rental to your primary residence constitutes a change in use.The depreciation recapture will be calculated based on the fair market value of the building at the time of conversion, not including the land value.Since you're tearing down the existing structure, the entire amount of depreciation taken over the past two years will likely be recaptured, as the building's value at conversion will effectively be zero.The recaptured amount will be taxed as ordinary income, up to a maximum rate of 25% for residential rental property (Section 1250 property).

By focusing on effective time management, clear communication, building your network, and implementing a solid marketing strategy, you’ll be better prepared to navigate the ups and downs of the real estate industry.

Hi BP community!  I currently House Hack in Everett, WA (near Seattle) and utilize FurnishedFinder for our basement ADU with great success. I have built up enough equity and savings and will start adding multiple rent...

If I take a break, that part of the business cannot function effectively.  

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