Selling at FMV avoids the gift tax but provides your child with a higher tax basis, reducing their future capital gains liability.A better strategy for selling below FMV is to sell the house at FMV on an installment note, then forgive interest and principal annually up to the gift tax exclusion amount.

RE is always changing and if you have only one niche then well your limited in opportunities and subject to the conditions that exist at the time for that strategy.  

I'm a 2x house hacker here in LA (a case study in the BP book The House Hacking Strategy) and an out of state investor.

Are you adjusting your strategy as rents decline?

Its a fairly common strategy.

@Samuel Kim - please contact @Chris K. privately and allow him to show you how you can benefit from this wonderful strategy that he implemented for his many health professional clients.

Hi @Drew Sygit, thanks for your response.You shared some good insight, particularly about the classes of tenants that would push back against the strategy I proposed originally.

Once you have a pipeline, you can refine your criteria and adjust based on what works best for your market and strategy.

Good luck with the wholesaling strategy.

Early on, I was locked into a competitive mindset, but once I started collaborating—whether with wholesalers bringing me deals or flippers looking for exit strategies—it became a game-changer and ultimately made me more successful.