I was at a CCIM luncheon recently and some of my lender buddies and I were discussing that many of their banks are getting out of multi-family because of rising costs to manage the properties...including taxes and insurance.

Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

I’m new to investing and I’ve been hearing cash flow is tax free.

well. lower tax's generally helps RE and business as a whole. will have to see if they come up with something specific like the cost seg rules that are redy to sunset.

@Ed Hoffman  actually, you can transfer it via Quit Claim right there at the closing table before you leave the title company.

Built-in accounting software, keeps track of everything better and helps for tax returns at the end of the year3. multiple payment options are usually available for residents4. maintenance requests all in one area, easier to keep track of and keep residents informed of the status5.

Taking the time to work with the Banker and discuss common rents, taxes, any HOA's for example is key.

Those that respond “$0” or something ridiculous, you can request income documentation from them to justify.Don’t be afraid to share with them how much your property taxes & Insurance increased and that YOU cannot afford to absorb them.ALWAYS get an increase or something of value annually when rents are increasing or tenants will start thinking they should never have an increase, making future increases that much more difficult to negotiate.

My first thought was sell to lock in your tax free cap gain.

The main reason some investors put new STRs (short-term rentals) into service toward the end of the year is to take advantage of the tax benefits, especially if they have W-2 income they want to offset.