A tidy profit, plus confidence to tackle the next project solo.On the topic of self-directed IRAs: While they’re fantastic for gaining experience and diversifying into real estate over time, they can feel restrictive if your main goal is scaling quickly.Here’s what I’d focus on:Using Equity Wisely: A HELOC or cash-out refinance could unlock funds to pursue a flip or duplex without touching your 401(k).Partnering Smartly: Your realtor friend sounds like a great resource.

Real estate transactions, especially flips, come with specific tax implications such as the potential for dealer classification, short-term capital gains, and cost allocation for renovations, which can significantly impact your tax liability.

So yes you can exchange it to save capital gains taxes on $266k plus 19 years of depreciation recapture.

Talk to an accountant prior to doing the cost segregation study.You want to discuss whether it will be beneficial or not.In general real estate is considered passive which means that it can't be used to offset other forms of income such as wages, interest, dividends, capital gains, etc.However, there are some exceptions where the real estate loss can offset these types of income.best of luck.

Capital gain is nothing like the cities though.

It also requires gaining a level of sophistication and knowledge that not everyone has the time, inclination or ability to do.

I think there will be a market for it and you will gain some market share, but I don't think there will be tons of profits coming in.

The purpose of this type of method is to gain an income stream on a monthly basis, which t-bills don't do.

Ensure compliance with local laws, start with smaller loans to gain experience, monitor your investments regularly, and trust your instincts as you navigate this venture.I myself, as a PML.

The cons as i see it include loosing the 2 of 5 year cap gain exception, typically not an ideal rental because the emphasis at purchase was buying a good home for your family and not a rental with optimal return (my ex-home consistently has the lowest cash flow for equity in my RE portfolio), not disconnected enough from the property causes addition angst on damage and may result in over improvement.