A property qualifies as Homestead for this exemption if an eligible owner files a Principal Residence Exemption (PRE): https://www.michigan.gov/taxes/0,4676,7-238-43535_43539-210891--,00.html#:~:text=Section%20211.7cc%20and%20211.7,purposes%20up%20to%2018%20mills.Many investors have gotten an ugly surprise when they bought a property that was a primary residence of the seller for the last 20 years.

Here’s why and what alternatives might exist:Real Estate Syndication or Fund: Invest in funds that generate passive rental income, which can offset Schedule E losses.Real Estate Professional (REPS): Qualify for REPS to reclassify rental losses as non-passive, allowing them to offset active income.This post does not create a CPA-Client relationship.

A qualified attorney can set this up.

@Gary Bonds owning a few rentals is not a business at least according to my accountant, Best to attempt to qualify using your personal income.

Most DSCR lenders will require a minimum of 90 days seasoning to qualify for a cash out refinance on the new appraised value. 

If you hired an agent or a broker to work with you, you'd be covered - but regulations & laws vary from place to place.Screening is best done by establishing a set of guidelines to qualify applicant tenants, then sticking to those rules to avoid legal issues (and for your own sanity).

Quick tips…✅ Everyday Homeowners - track all home improvements as you could qualify for energy efficiency home improvement credit - new exterior windows, new central A/C, new hot water heater, new insulation material.✅ Investors - Keep detailed records of ALL rental property expenses to reduce your taxable income - helping your CPA spot additional tax saving opportunities.Imperative to use a CPA who is well versed in Real Estate tax code.My CPA is just that - DM me to get his contact information....

It took me 5 days to find qualified tenants with good credit score and income but my property manager still charges me full listing fee even though I did the whole listing, marketing and prescreening and they helped with 1 showing - they only showed one tenant who I prescreened through Zillow.

Neutral colors work well, and energy-efficient upgrades not only attract buyers but can also qualify for tax benefits.

How much are you qualified to borrow and what will your monthly costs be for mortgage, insurance, taxes???