Coffered ceilings, low corner additions etc.Anyone can slap lipstick on a pig, looking for high value add in high demand markets is where the $ is.

I was hoping to love Minoan and you do receive more of a discount here sometimes.

Hi Chris, if I understand the transaction it sounds like you will receive a 1099-S for the full amount.

As you alluded to, sometimes a passive note investment purchased for monthly payments “goes south”, and becomes an active participation investment, with plenty of additional capital required for legal fees, forced place insurance, and property taxes.  

As for valuation, I see no reasons why a Junior ADU would negatively impact additional housing unit.

In addition to offering "cash for keys" assure them that they can use you as a referral on their next tenant application, or offer them a short term-2 month lease.

However, note that claiming additional depreciation will increase, not decrease, depreciation recapture tax (up to 25%) when you sell.Key Considerations (Updated for 2025):1.

Additional costs will creep in and costs seem to go up faster than rents, so I would sell and try to otherwise optimize the VA loan. 

Additionally, a CPA can maximize child tax credits, rental property depreciation, and ensure compliance with reporting requirements for their 1099 income.

Texas has additional laws against these options.