This would allow you to keep the property in your portfolio and generate ongoing income.From a tax perspective, holding onto the property as a rental would let you take advantage of depreciation, which could reduce your taxable income.

Husband and I are considering buying his parents' home and I have some questions about this and would love any feedback on how to minimize hassle and our costs. We're doing this for two main reasons: 1) Prevent his da...

Instead, you’ll use Form 8949 and Schedule D to report the sale, but the gain should be reduced by the Section 121 exclusion.

For most it’s a colossal waste of time and energy.

Whenever you subtract inventory and reduce the housing stock you get the adverse effects you'd expect.  

With the Self Directed accounts your leverage IS more limited, but ALSO your risk is reduced due to that lower leverage and non-recourse type of loans.

Live in one unit and rent out the other to cover your mortgage, freeing up more cash.Partnering – Find a partner to help with funding or experience so you can acquire more properties faster.Creative Financing – Look into options like seller financing or lease options to reduce upfront costs and grow your portfolio quicker.Build Reserves – Make sure you have enough savings set aside for repairs or vacancies, especially with multiple properties.Once you’re out of debt, that extra $30-$40k per year will really help you expand.

He missed the target by nearly a month and we ended up paying holding costs, HOA, Utilities etc for an extra 6 months until finally selling in the spring for a reduced price.

This policy at lease signing greatly reduced late night parking calls.

Imagine making millions of dollars throughout your career and then having to pay Uncle Sam 30-50% every year instead of compounding that cash over time.This is exactly what real estate professionals have learned to mitigate.To reduce their taxable income, they buy a building every year, do a cost seg, and use depreciation to reduce their tax liability dramatically.Their personal wealth snowball grows much larger and much faster than their W2 counterparts who give most of their money back to the government each year.Following this strategy as a real estate professional is one of the best ways to end up with a much larger net worth at the end of your career.