To me real estate is a way for me to earn income and have more free time for my two kids and be able to leave something behind for them.

@Dan Simpson what a detailed post :)Before you move ahead on this deal, you need to calculate if the renovations you want to do still leave room for you to make money when you sell.

Probably not much different than leaving your cash in the bank.

Unless the Investor is conservative with the numbers from the outset, they may end up leaving a lot of their own money in the deal after Refi, despite all their knowledge about the "theory" of BRRRR.

Lead me to that Lender, not requiring him/me to have any skin in the game!

Apon leaving the property, the man living there walks up to our car and lays some serious news on us.

Thanks Morris for your the quick reply, let's leave the financing aside assuming the new investor has 100% of capital to purchase +51% or 100% of shares.

Leave a comment with your questions or thoughts.

I have seen on this website answers both ways regarding this (the site administrator saying leave it in Sch A, and his colleague (also a enrolled agent) advising that it can be written off in Sch E, but that there are certain restrictions mainly -- you must have passive activity gains where the deductions are covered (no passive activity loss carry over allowed.

They work well for the first two or three years until the tenant leaves.