After a solid 6 month intensive full rehab and pulling all the cash invested out I like to tell my wife 'Hey look at all the free passive income we have!'

So if it was your primary, you may be better cashing out now and tax free. 

You can do your own research and see what the Government gives you for Tax-deferred and Tax-free Sales of multi-family properties.

1.Subscribe to the BiggerPockets Money and Rookie Podcasts2.Attend the FREE WEBINARS3.Attend a Meetup in Your Area / virtual meet ups4.Purchase the Beginner Books: How to Invest in Real Estate, Set for Life, The House Hacking Strategy5.Peruse the forums!

We will then usually go with the lesser of 80%-85% of the total cost of the project or 70% of the As Completed Value from the appraiser.

Best of luck with your fund, and feel free to reach out if you have more questions!

-If we sell after year 2, do we claim 250k(yr 1) and 125k(yr 2 with half the house rented) for total deduction of 325k gain? 

If anyone has questions on Obie, feel free to send them my way.

I’d love to get schooled on this a bit if I’m totally outta my mind with this plan, but if there aren’t a bunch of tax or legal roadblocks, I’m thinking it can work.

1.Subscribe to the BiggerPockets Money and Rookie Podcasts2.Attend the FREE WEBINARS3.Attend a Meetup in Your Area / virtual meet ups4.Purchase the Beginner Books: How to Invest in Real Estate, Set for Life, The House Hacking Strategy5.Peruse the forums!