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.

The Numbers:Cash Flow Analysis: Investors typically look for properties that will generate positive cash flow—meaning the income from rent covers the property’s expenses (mortgage, taxes, maintenance, etc.) and then some.

if NJ is too expensive, go an hour or two out. 

Again, we were just happy our expenses were covered on the first home.

Deductible expenses include renovation costs, loan interest, and holding costs.

Quote from @Max Bellino: I’m looking for guidance on whether it’s worth opting for a rapid report for a cost segregation study, which is less expensive than a full site visit.

Ratios like 0.7% or 0.8% can still work, but it depends on your market and expenses.

I also use their virtual credit cards which enables me to assign a card to a specific person, like the cleaner for my STR for example, so when she runs a charge, it automatically drops into the right account in terms of categorizing my expenses.

Hello I am going to sell my primary residence in Idaho and use the proceeds to buy a less expensive home in Oregon without a mortgage loan (all cash).

In my opinion, Dallas represents more upside with lower risk, and is less expensive than Houston.