My CPA was unsure... do you issue 1090-NEC for the difference between 1099-K and 1099-MISC or do you double up the income (i.e. 1099-NEC for gross rents from PM, 1099-K of the net owner distribution on 1099-K, then owner reports double income and puts a line item expense for the 1099-K since 1099-MISC covers gross rents).You need a new accountant lolPM issues 1099-MISC, not NEC for rental income paid to property owners.You would still issue the rental income paid to the owners regardless of the payment method.The Property Owners should add an expense line item on Schedule C stating that income reported twice on Form 1099 to offset any duplicated amount.

-Loan bal is around $300k and home worth low $400s.

This allows you to benefit from appreciation, continue building equity, and still access capital for new deals without sacrificing an ultra-low fixed-rate loan.Would love to hear what direction you’re leaning—lots of ways to approach this depending on your risk tolerance and goals!

@Alex SchumerBookkeeper – Handles day-to-day financial tracking, including expense categorization, reconciliations, and generating reports like P&Ls.

If I was the buyer's broker, I would have checked myself to protect my client.If they had, then they would have found out it was not a three family.Its a valid point.In NM, our zoning / city doesn't post # of units publicly, only high density residential or low density. 

Higher interest rates on conventional loans may result, as the government backing currently helps keep rates low.

Mom and pop keeping the MHP forever and passing it onto their heirs who keep rents artificially low forever.

So, to the chagrin of some developers it can get a little expensive at times but on the flip side of that coin it provides kind of a firewall so that what ever is being built is being built with a strong intention.

@Armani Pimentel Yes, I believe that wholesaling is generally not the way to go, because it is getting banned, there are people who try to take advantage of aspiring entrepreneurs like you, and it is extremely low probability. 

Quote from @Max Bellino: I’m looking for guidance on whether it’s worth opting for a rapid report for a cost segregation study, which is less expensive than a full site visit.