Van Gundy, Trofimoff, and ORES lied about a merchant payment processor.47.

IF you cannot qualify for a full doc loan then a DSCR loan does NOT look at your returns.

At a high level, this is generally the path people take - we see a lot of people have success in this route - start building the portfolio with banks, low down payments, and then **generally** when you hit around 5 or so properties - it starts to make sense to switch over to LLCs, its too hard to qualify/deal with paperwork of banks and switch towards private lenders like DSCR Loans - (LLC friendly, easier) to scale past 5 or so.

Depreciation can create paper losses to offset rental income or passive income, and qualifying as a Real Estate Professional (REPS) or STR loophole can allow losses to offset W-2 income.This post does not create a CPA-Client relationship.

I am not qualified to say how it should be done.

After literally years of looking (since 2022) I bought my first property a few months ago, so I feel extremely qualified to give advice (many people earned lots of equity during the pandemic appreciation-boom if they bought before 2022, but out-of-state investors getting started AFTER the 2022 interest rate hikes are few and far between). 

There are so many misleading "gurus" and advice from others online - that don't make logical sense.Who do you think qualifies for an S8 voucher?

You can compare both options and see which makes more sense with the rate you'd qualify for.

@Nina Ning I do not play detective or require past rental payments to qualify for my units.

The best strategy depends on your goals, but here’s a breakdown:Selling outright would result in paying capital gains tax and depreciation recapture, but since the appreciation is minimal, the tax impact may be relatively low.Gifting the property to your son could potentially allow him to sell it with a lower tax rate, but since he hasn't used it as a primary residence, he won’t qualify for the exclusion of capital gains tax on a primary residence, and you'd need to account for gift tax implications.1031 exchange could defer taxes, but you would need to purchase a like-kind property of equal or greater value and meet all the IRS requirements.