Or they have to get an IO bridge loan to cover the rehab and then get more permeant capital once complete and they can show a steady TTM run rate.

Also with most short term bridge loans you won't have any type of pre-payment penalty so if you exit the loan quickly, the cost of the loan would be substantially less.

Honestly if profit is less than 200k I would just pay the taxes.There're more strategy that you can think of to avoid possible losses such as (a) selling primary and then move to rental or (b) add the cash portion so it's almost 100% cash to get the house is accepted OR (c) having bridge loan ready, expensive but sometimes necessary.There're are even whole specialized financing product for situation like 1031, at the end of the day, watch you cost.

So I had a place in Gatineau just across the bridge and I rented it for 2 months on AirBnb at average110$/night.

1) you get a partner who's willing to put up the down payment. no (reputable) lending institution would stick their neck out like this without some skin in the game from you. but a partner might be willing to bridge that gap for the both of you. or you could explore private money (someone you personally know) who might be willing to do the financing for you and take on a little more risk than an institution would be. 2) totally reasonable and do-able. just be cautious of property tax reassessment in switching title from personal to LLC, some counties will hit you with this.

For example, if you lose your W2 job you won't be able to get a HELOC, but if you already have one in place you can use it to help bridge between jobs .You get the HELOC BEFORE you need it so that it is in place to use when you need to smooth out a cash flow hiccup.

I'm also just across the bridge in Saint Pete :) 

Born and raised in Baton Rouge, I am 24 years old and graduated in Civil Engineering with both a Bachelor’s and Master’s Degree from LSU (Geaux Tigers), and now currently working as a Bridge Engineer.

I am still in the learning process but have a few tidbits I can share:1) They are quite involved but it is a great way to bridge the equity gap as LIHTC credits can yield 80 cents+/dollar of credit, however, the application process and associated accounting and legal costs will be greater than your average deal.2) You will want to partner with a syndicator that will sell the tax credits for you.3) Each state only gets a certain allocation of credits so to get the credits you must fill you at QAP document, which is usually found by visiting your state's Housing Authority website.

Also looking to possibly do bridge to take down a 64 unit that can potentially cash flow 500K, etc...Zach, I went into those details to show you that it doesnt have to be perfect.