(I am a silent investor, the developer is doing all the heavy lifting, and we split profits at the end)It sounds like you’re being really strategic here, which is smart.

@Dominic Battaglia Smart man! 

I intend to increase my portfolio, just want to be smart about how I do it.thanks all.

Use this as a way to secure downpayment, then refinance and pay back the loan to secure your cryptocurrency.That said however, I think real estate investing is going to change dramatically over the next several years, largely due to smart contracts and tokenization.

Whatever you do, leverage smartly—DSCR loans can help you buy more without draining your cash, and depreciation will handle your tax burden for 2024.

The housing market is always changing, and staying informed is the key to making smart moves.

If you have the cash to make a lump sum payment and are happy with your current loan terms, recasting could be a smart move to improve your financial flexibility.

When is it a smart time to reinvest?

So it’s not smart for her to do a quit claim deed. 

This is most of the depreciation you are taking year one.You can calculate your depreciation recapture by taking the sale price of the asset and subtracting the adjusted cost basis.The adjusted cost basis is what you paid for the asset plus any improvements you made along the way minus the depreciation you took along the way.The profit above this original cost is taxed as a capital gain, but the part linked to depreciation is taxed at a maximum rate of 25% under the unrecaptured gains of section 1250.To recap the tax rates are:- Sec. 1250 real property: 25%- Sec. 1245 property and 15 year 1250 property: Ordinary Tax RatesThere are ways to minimize depreciation recapture especially if you know how to work smart with your CPA.1) Asset Valuation at Time of Sale - Sellers can minimize recapture by reallocating the price of the assets on sale.