Even getting out with a small profit will add to your return as long as you don't lose it all in taxes.

A 1031 exchange doesn’t apply, but funding through a self-directed IRA can defer taxes, though profits from debt financing may trigger UBIT.To reduce taxes, consider forming an LLC for better expense deductions, offsetting gains with investment losses, or holding the property for 12+ months to qualify for lower long-term capital gains rates.This post does not create a CPA-Client relationship.

Since in the sponsor - investor platform the investor is giving up decision making to the sponsor, there needs to be a legal structure offering the investor recourse should the sponsor not act in the investors best interest, or prove incompetent to manage the enterprise.3.

They have a great bearing on your profitability, but they don't affect the rent.

@Dallin BlankFoundation issues are common in DFW due to the clay soil, but many investors still profit by knowing how to assess and negotiate these properties.

Now, if she had someone she implicitly trusts to manage it, as though she were present, that might work, but the added costs would probably make the endeavor non- profitable.  

And I bought 3 other properties with a different deal structure, but also profitable. 

Oversimplifying it just a bit, the investor profits from:- a non-refundable option paid by the tenant-buyer which gives them the right to purchase the property within their option period- the spread between the rent paid by the investor to the property owner and the rent paid to the investor by the tenant-buyer over the life of the option- the spread between the price ultimately paid by the investor when they exercise their option with the owner and the price ultimately paid by the tenant-buyer when they exercise their option with the investorClear as mud?

During 2020 to 2022 I was fighting to keep my business profitable as materials and labor came in short supply and eventually led to the inflation we're seeing now.

At over 4000 sq ft, I'm surprised you won't be able to list for a much higher number to net a decent profit, but without knowing more specifics on the house and location, I am speculating here.