Considering that my parents and I are not Canadian citizens it adds an additional wrinkle to things as they or I are not able to claim this as the primary residence and avoid the capitol gains tax... a lot to consider and think about.

What are you trying to accomplish, what’s the upside to fight all the additional downsides I’ve pointed out?

Are you cashing out the equity and using additional revenue streams to get the 2nd one?

Added a new cistern for water and added a shop bathroom in addition to completing the apartment.

Quote from @Jaycee Greene: A few things I noticed, in addition to having the tenant pay the utilities are:1) Incorporate annual increases in rent higher than 2% (in your area, maybe 4%-5%) with a slightly smaller increase in operating expenses (say 2%-3%)2) With a gut rehab, I'm not sure why you need to spend $128/month on cap ex, at least for the first year or 2.3a) An 80% cash out refi is probably going to be hard to get.

I have a capital gain taxes question:if I sell my home for 510k and provide the seller 10k seller credit towards escrow costs, would I be paying capital gains taxes in California for that additional 10k?

Additionally, your parents might consider a reverse exchange, where they purchase the replacement property first and then sell the relinquished property.

You can prevent this by requiring them to add you as "additional interest" on their policy.

Hi Julia,Rehabbing fire-damaged properties can be a profitable venture, but it requires careful planning and additional considerations.

Additionally, we rented out a room for one year.