I’m actively analyzing the demographics and rental trends in the area to ensure these upgrades aren’t just attractive but also functional and desirable.

We get inquiries all of the time on Airbnb/VRBO/etc for large group functions at our properties, even if we say in the listing it is not allowed. 

The IRS defines a “quality” cost segregation study as “a study that is both accurate and well documented with regard to” 1) the classification of property into classes, 2) Explanation of rationale for the classification of the property and 3) substantiation of the cost basis of each asset and reconciliation of the total allocated costs to total actual costs.

That being said, you can find a home that can function as a duplex.

Your GC will know how to apply for the correct permits.Avoiding the issues in the future is a function of respecting the permitting process in the first place.  

@Zach Denny Did you ever put your deal together, if so I'd be curious what the bank required on CLTV and if you had to source the total down payment (PP-First Loan) then apply seller second, or if the bank let you do all that at closing functionally making your DP = PP-First Loan-Second Loan.

Weekends for a lot of people are usually tied up with kids sports, family functions and trips.

Real estate transactions, especially flips, come with specific tax implications such as the potential for dealer classification, short-term capital gains, and cost allocation for renovations, which can significantly impact your tax liability.

Consider using DSCR loans- Cash flow of the property is considered in lieu of your income3.Consider purchasing in a different asset class (Large multifamily) where borrowing will be a function o fthe property income, not yours

Thank you for sharing your experience here; it’s a good reminder to be extra careful when dealing with properties like this.This post has definitely made me realize how important it is to double-check zoning and property classifications before closing on a deal.