However, unless you're doing this as part of a BRRRR strategy, you may end up paying closing costs twice and incurring unnecessary interest on the HELOC prior to refinancing.Additionally, conventional loans often have seasoning requirements of 6-12 months, while DSCR loans typically require only 3-6 months.This post does not create a CPA-Client relationship.

This post does not create a CPA-Client relationship.

Disallowed losses under wash sale rules increase the cost basis of replacement securities, potentially reducing future taxable gains.This post does not create a CPA-Client relationship.

If the signs point to selling, consult your CPA about the tax implications.

Consider forming an LLC for liability protection or an S-Corp for tax efficiency if flipping frequently.This post does not create a CPA-Client relationship.

LLC offers no tax savings.This post does not create a CPA-Client relationship.

It fills out your Schedule E to send off to your CPA every year!

The value of the property and how it’s distributed relative to ownership stakes will determine whether it counts as a taxable event, I believe(I’m not a CPA or attorney). 

This is probably a question for your personal CPA or if you don't have one, paying a consultation fee to a Real Estate centered CPA would be a good investment. 

Hey @Greg Strunak, get a good CPA to help get this all setup.