Capitalize renovation costs to increase the property’s basis and reduce future taxable gains.

Hi Ryan,Typically construction financing isn't based on your taxable income and rather more contingent on your experience, FICO and the deal itself.

2) wouldn't the interest be taxable to seller?

I was playing with the idea of selling my condo, taking 300k of the equity to put a down payment towards a house listed at 660k.I'm assuming the reno will run $300/sqft and going in with the assumption that phase 1 will run 750k (figure the expansion of the house will have to wait) for the gut reno.I assume/hope (but definitely not banking on) that I will be able to refi in 2-3 years at a lower interest rate; if not for a lower rate.This will likely be a family home for the next 5-10 years at LEAST so investment value isn't quite at top of mind ATM.Questions:Even if it's not for lower interest rate, do you feel it's advisable to refi to remove the 203 loan in the future?

Leftover funds not reinvested are taxable as "boot."

Transferring a property title later could be deemed a taxable gift if it exceeds the annual exclusion ($17,000 for 2024).

Every time you lower your tax bracket you are lowering the value of the deductions.

You may need to replace insulation, sheetrock, or even framing material.The only way I would touch it is to have a contractor give me an estimate for renovation, then lower the price far enough to handle that renovation.

The importance of lowering expenses and increasing efficiency to maximize property income.

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