Five units and above is a commercial property, and is handled differently in the market.

Does anyone have a map breaking down the Phoenix market area ?

I know that interest rate is WELL below market.

As we wrap up the year and look ahead to 2025, the real estate market continues to present unique challenges and opportunities for investors, brokers, and lenders alike.

That’s a small fraction of what all that would cost in my market.

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).

You are positioned right at one of the top 10, if not 3, STR markets on the planet buddy! 

I hope you are doing well and sounds like you are an experience investor in this market - would love to maybe grab coffee sometime and hear about the experiences you have gain over that last 15 years!

I understand they may do up to 30% actual real estate, mfh mainly.That is a higher risk IMO, especially in this market. 

what would you think of a 14,600sqft 3 unit property in sailboat bend, off market, that is RMM25 zoned and has a nice single family and duplex behind it, half of the lot if empty so it can be developed or RV/trailer parking, for $1.1M?