If so, they can sell within 2 years and not pay capital gains taxes on the sell of the home.They could take that money and buy multiple rental homes in other areas if they wanted, or use the money to downsize in to a different home while still having money left over.

That’s the magic of real estate compounding over time, and it’s stories like yours that really highlight this.. from what i read in the street journal, that slow build often outperforms shorter-term stategies.From an investor-friendly agent’s perspective, being willing to dig into the neighborhoods (driving for dollars) and having a robust network.. from probate attorneys to local contractors.. can pay off big.

Trans union missed an obvious reject candidate and now I’m paying the price.

They also discussed a capital call but instead decided to borrow more money to pay the bills.

I use all the rental cash flow to pay these loans off asap, then repeat.

My plan is to buy the house subject to their existing mortgage, renovate the property, refinance it and pay off their remaining loan balance using the money from the cash out refinance.

Mainly the panel is in the basement and it would require a ton of work and paying for labor hours + repairs. 

My portfolio is not that large and it irked me to pay a bookkeeper so much and still have to do a lot of the work.

I know what it’s like to be in your position, and I believe in paying it forward.

Need to pay down some leverage to keep that DTI healthy!