There are multiple cities here in Maricopa County that would allow you to house hack and cash flow.

it was an interesting process but basically, the novation allowed us to get the deal done without having to involve the banks. this was a huge motivation. that way I save on having to close twice. 

This simple update has big implications for property owners, allowing small repairs and maintenance to be handled more quickly and affordably.

However, if you sell instead of rebuilding, the IRS may include part of the payout in your taxable gain unless reinvested under the §1033 involuntary conversion rules, which allow you to defer taxes by purchasing a similar property within two years.If the property was your primary residence, you may exclude up to $250K (single) or $500K (married) of gains if you lived there for at least 2 of the last 5 years, likely resulting in no taxes owed.

Sale Price$171,000 - $55,000 (Rehab) - $13,680 (8% fees) - $40,000 (profit) = $62,320 MAOFrom talking to other investors and doing research, typically a Novation allow more money to the seller, correct? 

My starting questions so far are* If zoning allows multi-family, would I need any zoning approvals for a conversion?

Other banks allowed us to do our own in house valuations.

The wait-list becomes a longer wait-list until states and localities allow them.If the trend for 2025 will be more ADUs as stated in On The Market podcast.

They remain distinct on Form 1040 with different tax treatmentOnly capital losses can offset capital gains (except for the $3,000 allowance)So even though material participation makes the loss non-passive, it's still an ordinary loss that cannot offset capital gains from stock sales on the return.The only way capital losses can become ordinary is upon the sale of your property, and that loss could offset your W2 salary.  

Many lenders will allow you to do a BRRRR and take cash out, even without owning the property for 6 to 12 months.