@Merrick Hidalgo If your private REIT investment is returning only 10% of the principal and the remaining 90% is likely lost, the key factor in claiming a capital loss is when the loss is realized for tax purposes.

We would see inflation increase further.

I certainly know that future years the expenses won't remain that low, but wouldn't that be a reality on a property that has a lot of recent improvements?  

The process of buying, rehabbing, and stabilizing a property remains the same whether it's a duplex or a 50-unit building, but the upside is greater at scale.

Faced with these burdens, many owners choose to limit their renovations to cosmetic work or, worse, proceed without permits to avoid triggering the requirement.This raises a crucial question: which is safer—a fully gutted and renovated building with modern electrical and heating systems, rebuilt to 2025 code but without sprinklers, or a building where the original, outdated wiring and heating systems remain in place because owners chose to avoid triggering costly sprinkler requirements?

If you decide to sell, you will only have paid a little more in interest over the remaining time that you are in your home.   

The Phoenix market has remained strong, with steady population growth and rising home values creating solid opportunities for both flips and new builds.

Let inflation do it's thing for another 10 years.

Hi @Alex Lee I would avoid 203K loan and work with conventional renovation loan based on knowing you'll be forced to use 203k certified contractors which will cost more money and offer inflated pricing because they must follow 203k guidelines. 

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