If you are open to non-traditional methods of financing, you could use a debt service loan to bypass that requirement.

When looking to structure a deal like this, look for a dated property in working condition. 

Find Brandon's videos on YouTube for the "four square" method of analyzing homes and practice.

This means buyers can secure properties at better prices, and we have more opportunities to structure competitive financing solutions.Homes Staying on Market Longer Creates Leverage for Buyers: The average home is now sitting for 73 days, the longest since 2020.

In your case, changing the property from a rental to your primary residence constitutes a change in use.The depreciation recapture will be calculated based on the fair market value of the building at the time of conversion, not including the land value.Since you're tearing down the existing structure, the entire amount of depreciation taken over the past two years will likely be recaptured, as the building's value at conversion will effectively be zero.The recaptured amount will be taxed as ordinary income, up to a maximum rate of 25% for residential rental property (Section 1250 property).

To avoid issues, hold the property in the trust for a year, ensure the LLC is properly structured, and consult a CPA or 1031 exchange expert to confirm compliance with state and federal tax laws.This post does not create a CPA-Client relationship.

The biggest cost variables are structural surprises, electrical/plumbing overhauls, and environmental hazards (asbestos, lead, etc.).

The property next to me is a 1 acre lot, it has a Well, Septic and Power, but no structure.

These penalties can vary depending on the loan structure and the lender's terms.

My experience with friends/some clients is get their numbers via whatever method you can and reach out via the phone.