BUT there was nothing preventing DOCUMENTATION.

If you or him are just giving each other money with no legal documents in place so you can scoot buy and get in, then good luck to you both.

A 1031 exchange is NOT available for owner occupied property so that’s the bad news.The good news is for owner occupied primary residences, for married couples, the first $500,000 of pain is tax free.No need to worry about a 1031, live in the house, sell it, use the $500,000 exclusion and you pay KP tax on whatever profit may exist,2.

Definitely not doing the work myself so it sounds like resale value won't be impacted if I have a licensed person fix the issue and provide evidence/documentation that it was done correctly.

Potential ChallengesPrepayment Penalties: Check your FHA loan terms for any prepayment penalties or fees for refinancing before a year.Appraisal Risks: Ensure your property’s renovations are well-documented to support the higher valuation needed to pull equity.Lender Requirements: Commercial lenders may scrutinize your LLC’s financials and operational track record.

2.WHAT OTHER DOCUMENTS SHOULD I ASK THE HOMEOWNER TO SIGN?

What documentation will you require at closing?

What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.?

So creating all these funky financials is great, but if you are using those in a presentation that information should be in the PPM or an official document as if someone is making a decision based on that - it can come back to bite them.

Since most properties on the market here have inspections and a disclosure packet up front, it will be difficult to get those documents without MLS access.