The initial investment is providing a loan, there is no tax write off.Similiarly, there is no income recorded when you receive the loan proceeds back.The only time there may be a potential write-off of the original loan amount is if the borrower is not able to pay it back.

Needs to be part of the complete transaction, otherwise you are encouraging the buyer to potentially commit loan fraud....and they should not want to do that, and if you are licensed you don't want them to do that...and even if you are not licensed, you don't want them to do that. 

Work with a real estate agent Make sure to thoroughly check out potential properties by conducting inspections, condition assessments, financial analysis, and reviewing zoning regulations.

Most of these homes are "as is", so if you aren't very familiar with the costs of potential problems that you can't physically see (foundation, septic, etc.), this may not be a good place for you to source. 

I think Allentown and Scranton both have potential.

Given that we like skiing as a family activity and wouldn't mind moving to Colorado at some point this seemed like a potential option.Where I'm struggling on this is that it seems that the economics don't really make sense given property prices, mortgage rates, and occupancy.

"But can't you see the potential?"

This cost is often justified by the value added through their expert advice, ensuring compliance, optimizing your tax return, and potentially saving you from costly mistakes.Audit Support: Another significant advantage of a CPA is their ability to represent you in the event of an IRS audit.

So, our equity went up 25%, but our annual appreciation potential went up 428%.I’ll do my best to answer any questions if you have any.

This investment is a great first step to building your real estate portfolio, remember to factor in potential fluctuations for refinancing and have a buffer in your rehab budget for a smoother experience.