Quote from @Mike Hern: question is, since you have to take the depreciation, and recapture at sale - what's the point?

Also, I'm not sure how you're paying attention to it on the tax side, but the unit that you are living in's profit at sale is calculated differently than the other unit that you're renting out.Once you move out, that unit is officially available for rent so from that point forward, any profit gained at future sale will be calculated starting from that point and will be taxable.

In our opinion, Class C tenants have FICO scores from 560 to 620 - where their chance of default/nonpayment is 15-22%.

Because it takes "an expert" to explain novation, avoidance of due on sale clauses, ignorance of state foreclosure rescue statues trusts, why you don't need title reports, attorneys or reserves, and don't forget to throw in the Garn–St.

@James Thompson Transferring property from your in-laws to you can be done through a gift, sale, or trust transfer, each with different tax implications.

I’ve gone through purchases, sales, 1031 exchanges, remote inspections, and repairs, all handled smoothly with minimal involvement on my end.

-The right “how” will attract the right “who” and discourage and weed out the wrong “who”.Me and my property management team developed the a 40-Point Complete Household System to not leave the “how” to chance.

Based on all those factors, your best chance would be to partner with a more seasoned investor to get loans.

You are essentially doing a partial sale of your home.

At the current cost to build estimate $150/sqft, It appears a 1500-1700 sqft new construction will need to sale for around 399,9k to make a decent profit.