Future gains on the investment portion may be deferred with another 1031 exchange, while gains on the primary residence may qualify for the $250k/$500k exclusion if residency requirements are met.This post does not create a CPA-Client relationship.

There are limits to this as well (when someone stays the whole time and doesn't say anything while there), but if someone chooses to leave early or right away, give them their money back before they drill you with a 1-star review.

It's lengthy and of course, they can pick and choose what to read or jump around to what they want to learn. 

State your legal theory if you choose to take an adversarial position.

Knowledge is power:Thorough Inspections: Minimize surprises with detailed inspections and due diligence.Strong Screening: Careful tenant selection reduces vacancy and headaches.Diversification: Spread your investments across different locations and property types to mitigate risk.Financial Planning: Maintain a buffer and choose financing options that fit your long-term goals.

For property selection, choosing a duplex or triplex in a good neighborhood can provide steady cash flow, while adding an ADU to a single-family home works well in areas with high rental demand like Portland.

You could also offer to cover part of their tax liability through negotiation or encourage them to convert the property into their primary residence to use the IRS exclusion for up to $250K/$500K in gains.

If I were to start today, I would still choose to do the same thing - house hacking.

@Venecia BaezThe action plan for real estate investing involves setting clear goals, assessing finances, choosing a market, building a network, understanding numbers, starting small, and learning from experience.

IF the lender does find out the lender can choose what course of action to take.