To be clear to potential investors, there is just as much downside risk in the preferred as the common equity.

Taxes are calculated on the gain (e.g. sale price - purchase price + expenses, broken down fairly clearly by @Jake Baker) not just on the sale price.The tax treatment on sale of a Primary Residence vs.

Become a Material Participant.We are given a clear framework for determining Material Participation (not passive) in Pub 925.There are 7 scenarios that will get you there.Material participation scenarios (Pub 925):1. 500 hours.2.

Another option is exploring secondary market platforms like NotesDirect or Paperstac to streamline sales.Hurdles you might face include ensuring clear documentation, compliance with DSCR underwriting, and strong borrower credit profiles.

so, to be clear you are no longer converting to a 4 unit? 

If there is a problematic tenant, I always ask that the property is VACANT @ COE.If the current owner wants to close, they will have it vacant before we issue a clear to close.

nobody from BP or anywhere has urged me to read any particular book just to be clear. 

Or is it that you really need to buy the house free and clear and that’s your only option?  

I had later found out, he had done ZERO work at all himself except for the times I was there and literally called him in and I had asked him to help his friend who was clearly struggling.

However, it's essential to ensure that the property's condition aligns with your investment goals and that you have a clear plan for any necessary renovations.Fix & Flip :Freddie Mac properties can also be suitable for fix-and-flip investments.