Depending on the loan amount for the new property, roughly a little over half of the gain could be deferred through the exchange.Without a 1031, they’ll face taxes on the entire gain, including federal capital gains tax (likely 15% based on their income), California state tax, and depreciation recapture, potentially totaling $130-150K.

Hi Shayan,It definitely doesn't hurt to get another quote from a different GC for sanity check.DSCR loans won't work if the property is not rental condition and it won't fund any of your rehab budget.

I would upgrade properties every 12-15 months as allowed by low down payment loans if my significant other wasn’t risk adverse and opposed to moving.

@Greg ReeseMost small investors will benefit by having the LLC created in the state where the property is located at.Creating an LLC in a state like Nevada, Delaware, Wyoming may be better for the big players if items such as charging orders, business friendly case law, anonymity are important to you.However, be mindful that setting up LLC's in those states will add to your costs as you may have increased annual fees for annual LLC fees + registered agent fees.

I also provide small shampoo's and conditioners that I get in bulk from Amazon.It is hard to beat either for these kinds of supplies, even if you get a wholesaler to sell to you.

If you did finance some of the purchase using a non-recourse loan, then you need to read up on UBTI/UDFI and there are some taxation benefits that the IRA can achieve since it now owes taxes in that scenario.

Some banks and lenders will calculate your Heloc payment based on the Max limit even if you only have a small portion used due to preventive risk. 

They should able to answer how the proforma returns would impact a $50/100k investment in dollar amounts.

For comparison, a Navy Federal FCU personal loan will be in the 15s%

Hi Scott, you don't need to be a first time homebuyer to use an FHA loan and you don't need to be low credit (as many would suppose), but the product probably appeals most to low-credit first time buyers.