I THiNK you will inherit their tax basis but no sec121 exemption, costing you 10’s of thousands in taxes.

Are they worth it… every year people waste money on car insurance, home insurance, and medical insurance….

My property taxes doubled all at once because I lost the homestead (homeowner) exemption and the other exemptions since it became a rental property.

Traveling nurses and other professionals search this area often with the considerable amount of hospitals, medical facilities and corporations in the surrounding cities. 

A few days ago it was looking pretty decent, but then we had a guest cancel a 7 night stay in June due to a medical emergency.2024: June 26%, July 58%.2023: June 70%, July 51%We donated a 3 night weekend to Isaiah House for a fund raising raffle so I didn't include them in the June 2024 numbers.  

Both FNMA and FHLMC permit this, under the following circumstances: Notes: For all such transfers affecting mortgage loans purchased or securitized by Fannie Mae on or after June 1, 2016, the transferee is not required to occupy the propertya limited liability company (LLC), provided thatthe mortgage loan was purchased or securitized by Fannie Mae on or after June 1, 2016, andthe LLC is controlled by the original borrower or the original borrower owns a majority interest in the LLC, and if the transfer results in a permitted change of occupancy type to an investment property, such change does not violate the security instrument (for example, the 12 month occupancy requirement for a principal residence).The servicer must notify the borrower that a property transferred to an LLC must be transferred back to a natural person prior to any subsequent refinance application in order to meet Fannie Mae’s Selling Guide underwriting requirements.Citation: D1-4.1-02: Allowable Exemptions Due to the Type of Transfer (04/13/2022)Now, you will still have the Note and reporting in your name individually and will still be personally responsible for the mortgage and most likely, the manner of transfer will enable any litigant to pierce the veil of your LLC, but you'll have what you wanted, for whatever reason. 

Obviously, the funds and syndication world has its own SEC exemptions, and you can invest all day in Reg A offerings or 506(b) offerings.  

Is there in wiggle room in the 2 in 5 years in order to meet the $500k capital gains exemption? 

John If primary residency you can claim the tax exemption, but need to report rental income and pay taxes for that. 

@Kaycie GunnIf you want debt financing hard money or private money lenders will fund with typically 25% down paymentIf you are looking to syndicate and raise money from investors then that is a different animal and you will need to file an sec exemption to raise money and depending on your experience it could be moderately challenging to near impossible.