Since I've invested that cash in a simple S&P index fund and have had 20%+ returns the last 2 years.

While this would not necessarily result in immediate taxes (because it can be offset by your lifetime gift and estate tax exclusion), a gift tax return (Form 709) would need to be filed.

This means no DTI, personal income verification, or tax returns are required.They’re also becoming a powerful tool for BRRRR investors during the refinance stage.

@Stanley Nguyen Interest income from private lending is taxed as ordinary income, which can significantly reduce your effective return.

To maximize returns, ensure compliance with local regulations, prioritize owning the land, and offer student-friendly amenities.

Analyzing an investment with the Cash on Cash return makes more sense to me.

It'll be easier to start with a turn-key property, but if you have a good contracting team, a value add will typically offer better returns. 

I would take a 10% return in my home town A/B versus a 15% return in a C market OSS.  

If he doesn't need the cash now, you could also negotiate a split you're comfortable with to get him the return you and he feel he should have at the point you refi when the balloon payment comes due. 

Meaning, the bank wants to see that a property cash flows for typically one to two years of tax returns before they count it as income.