And how do I roll this into a cheaper mortgage (my dti would be too bad for another conventional).Maybe a lender would be able to consider the electric "working" with the proper inspection?

But once they give it to you, you inherit their cost basis and have a taxable gain.

Meaning you get 4-5X the depreciation to defer your income from being taxable.

Disallowed losses under wash sale rules increase the cost basis of replacement securities, potentially reducing future taxable gains.This post does not create a CPA-Client relationship.

I used to cold call, skip trace, send mailers, and don't get me wrong you will get success from it like James above, however as you gain experience you will realize you need deals faster, easier, cheaper, and with more "meat on the bones" and in order to have that you need constant deals flowing through your eco system and that's hard to do with mailers, cold calls, VA's and skip tracing etc.

HI @Jimmy RojasYou have to show 2 years of taxable income to the IRS.

I just signed a bunch of disclosures from my lender and after reading them it has me thinking, "Is there a cheaper way to do this."

Quite a bit cheaper than HML.Hope that helps and good luck!

Leftover funds not reinvested are taxable as "boot."

My understanding is profit from lending is considered "taxable income" and is therefore added to your income and subject to your normal tax rate after all deductions, etc.