For existing properties, you must make substantial improvements (equal to the property’s value, excluding land) within 30 months.Ensure the duplex qualifies as an OZ investment and complies with QOF rules.

Keep records of the payment timing to substantiate your reporting if needed.This post does not create a CPA-Client relationship.

If you provide any kind of substantial services like catering, car service, etc you will change you tax situation and no longer can file under Schedule E.

Most on-market deals will likely not fit your investment criteria unless you allocate a substantial downpayment, often at least 30%-35%, or negotiate a price reduction that fits your requirements.Furthermore, while this is not the case for all metro ATL markets, my team and I typically see that a solid portion of the small multifamily space is comprised/orientated in neighborhoods of other small multifamily properties.

If I leave this amount in Sch-E, I get taxed at ordinary income tax rate at Federal and State level, which along with my regular W2 income can be substantial.

Both properties have a substantial amount of equity that’s essentially sitting idle.Would it be a good idea to tap into this equity (through a HELOC, cash-out refinance, etc.) to fund future fix-and-flip projects or purchase additional rental properties?

Finally, even with a substantial discount, the house may not be worth it.

Gentrification opportunities, As gentrification continues in certain parts of the city, early investors in these up-and-coming areas may see substantial returns on their investments.I would love to know what people think about investing in the Philadelphia area and if you are an investor, i'd love to connect to hear your thoughts and experiences.

It might take at least two years before we can make a substantial down payment on a second home. 

I will provide an update when I hear back or have substantial resolution to my issues.