Converting the entire property to a rental later allows full deductions but eliminates primary residence tax benefits, potentially increasing capital gains taxes on sale.

Hiring a property manager under Option B lightens the burden but eliminates cash flow if you leverage the property with a DSCR loan.

Diane could not let that one go by AS @Glenn Paulson states  its a tough job.. and nothing could be further from the truth that a PM in a low value asset environment just sits back and does nothing.. there is nothing more difficult to manage in real estate than low value assets.Now take SF property with high wage earners that have their rent ACH into your account each month live as neat and clean as you do.. then I can kind of agree.. but not low end houses.. no way no how.There is over head to a management company .. its not all net profit.Also Glenn with these type of rentals if you have never been in them.. asking how its doing in the first 6 months is a waste of time.. you need to check in year 2 and 3 once the honeymoon is over and a few  turn overs have happen maintenance then you can get a feel for the true numbers..

Returns look good on paper but the kind of tenants those homes will attract will eliminate your cash flow.Invest carefully.

So in your example, buying a trackhoe might grow your business or create greater profit by eliminating some outside costs, or letting you take on bigger projects, or speeding up existing projects, etc (just an example).

Non-profit or not, it will be UW as a business...the non-profit designation doesn't eliminate the lending review, just makes the proceeds non-taxable in order to be put to charitable use.

This eliminates the requirement for a new down payment since you are refinancing the existing debt.Lenders typically require:A copy of the owner-financing agreement.Proof of on-time payments (6–12 months).What to Do:Find lenders that offer rate-and-term refinancing for owner-financed properties (portfolio lenders and DSCR lenders often do this).Maintain a clean payment history.” 

I have found this process eliminates all the bad eggs before you even get to the interview.

However, for those with a net worth exceeding $1 million, it's often more advantageous to focus on wealth accumulation rather than debt elimination.

If they won't allow the property to be built on because of zoning then the municipality could be forced to pay for it as I said because they have in essence "taken" the property through the zoning ordinance by eliminating any viable use for it.