Convert the Property to a Primary Residence: If you live in the property for at least two of the five years before selling, you may qualify for the primary residence exclusion, which allows you to exclude up to $250,000 of capital gains ($500,000 for married couples) from taxation.4.

I started my MTR journey with a multifamily property as a LTR and slowly converted it one unit at a time and was really happy with that approach.

The seller converted one of the garages into a bonus room and it added 300sqft under AC.

If converted into a rental property, renovation costs can be capitalized for depreciation deductions.Good Luck!

My neighbor did this during one those programs (had a 2 family, made into a legal 3 family by converting the basement) but, among other things, he had to install a fire suppression system in the basement, expand windows for egress/ingress purposes, and do a whole bunch of other things.

We have a property there that we are in process of converting to a STR.

@Pete Harper - a 721 UPREIT is essentially converting your interest in a property into operating units of a REIT.

Purchase price: $179,000 Cash invested: $15,000 Lived in the property for 1 year.Knocked down living room wall, replaced Hvac, floors and gutted and remodeled the kitchen, attic insulation, converted the living room and the dining area into rooms.

What do you mean by convert?

A refinance later will have extra costs if you maintain FHA, but be cheaper on closing costs converting to conventional later, but conventional loans usually have higher rates.