Keep all the money you collected from the previous year for emergency only and repeat the process. 

Purchase price: $255,000 Cash invested: $75,000 Sale price: $415,000 Getting a little more comfortable with our processes

@Jonathan Klemm we are in the process of making A LOT of renovations.

You take a short class 30 minutes over the phone and once you finish this process you typically can save around 1% off your rate!

Ideally, I’m looking for buyers who can offer fair deals and make the process smooth.If you’ve sold owner-financed notes before, I’d love to hear about your experience—any tips or lessons learned would be greatly appreciated!

This significantly simplifies the process as it takes the secondary market out of the construction part of the process. 

This is important because these are generally the property owners with standing to file an appeal if they are not satisfied with the plans which can become a drawn out and expensive process.  

Always a good idea to include a tax accountant in your decision-making process. 

The process is very involved as you'll have to navigate pre-construction activities that involve architectural plans and approval from the city and then the construction activities (Shovel to soil) take anywhere from 5-9 months depending on how much your building. 

I'm writing this in December 2024, when every other question asked on the Bigger Pockets tax forum is about STRs.