Since moving into another fixer-upper isn’t ideal right now, consider leveraging your $40K for a low-money-down investment, like house hacking a small multifamily or using creative financing (seller financing, subject-to, or partnerships) to avoid tying up all your capital.

I can't say what's best for you, but I can tell you what I did for my first house.

Shortly after the crash my tenants learned that condo developers were renting out luxury apartments in the area for around the same rents I was charging so I was forced to lower rents. 1200/apt 2 1050/apt3. 

I've been house hacking for two years and for the first time I'm gonna be renting out the whole house and moving.

Quote from @Mary Jay: Quote from @Owen Rosen: Quote from @Mary Jay: Hi guys,1) So I have an insurance broker and it seems like the properties I have with him keeps getting inspected by the insurance companies.Our house that we live in is with a different insurance broker, 10 min away from the other ones, and our house NEVER gets inspected by the insurances.Roofs are the same age.

Syndication Reporting IssuesMissing Form 8918 for reportable transactionsInconsistent investor disclosuresRequired registrations skippedWhat Doesn't Actually Matter:(Despite What Your Uncle's CPA Says)Special AllocationsNormal promote structuresStandard waterfall provisionsTypical developer promotesReality: Unless extremely aggressive, IRS rarely caresTechnical DocumentationMinor §704(b) gapsCapital account glitchesTechnical allocation languageTruth: Unless hiding something biggerProperty Value AllocationsNormal basis step-upsTypical appreciation splitsStandard promote calculationsReal World Example:🏢 100-unit apartment complex4 partners, $5M dealDeveloper promote structure= Zero IRS interestSame Deal With Red Flags:🏢 100-unit apartment complexHidden partner arrangementsArtificial loss allocationsUnreported debt shifts= IRS AttentionPractical Protection Steps:Basic Documentation✅ Clean operating agreement✅ Economic substance✅ Partner contributions tracked(Don't need War & Peace complexity)Economic Reality✅ Allocations match economics✅ Real money movement✅ Actual partner participationClean Reporting✅ Consistent K-1s✅ Required forms filed✅ Clear communicationThe "Sleep Well" Test:Can you explain your structure to an IRS agent without sweating?

I’ll let readers decide how they want to interpret the facts I stated.The underlying investment was student housing.

Hiring a manager or Pad Split still means you’re in the BUSINESS of running a rooming house. 

I was trusted to find the houses, fix them and sell them.

Your margin for error on a house that is valued under $100k is so tight.