Include an exit strategy, tax planning, and insurance to protect both parties.

The state’s housing is also ranked as the fourth most affordable in the country.Alabama currently has the second-lowest average property tax rate in the country at 0.4%, which helps investors keep more of the money they earn.

I owe roughly $75K.I found an off-market, 6 unit deal that is owned by a customer of mine i'm interested in purchasing.

So, if you owe $725,000...then you owe more than the MAXIMUM possible loan is that you could get on a "cash out" mortgage.In order to do a cash out loan...you would need to owe LESS than 80% of the value of your primary home. 

So we would buy the aceage and since the legal descriptions still called out lot and block we would just start to deed out the lots to get them on the tax rolls and the Assessor would change the maps. 

It is surreal to look back and see how far I have come with my "Bigger Pockets degree" I owe a lot to this community.  

And still defers all the tax and depreciation recapture in the 1031 exchange.

@Breeya Johnson the entire market currently is in a cooling cycle with price declines and inflated expenses like property taxes and insurance.

Not only will you lose your property tax exemption, but you may need to secure LTR tenants.

And their tax advantages go away when you decide to quit and spend the money.