Be mindful of short-term capital gains tax, as profits from flips held for less than a year are taxed as ordinary income, and frequent flipping may result in self-employment taxes.While profits from flips do not qualify for 1031 exchanges (since flips are considered inventory, not investment properties), you can minimize your tax burden by deducting allowable expenses like renovation costs, loan interest, and holding expenses.If you're considering diversifying into rentals, explore opportunities to benefit from long-term tax advantages such as depreciation and lower long-term capital gains rates.

@Eric Helena, There is no statutory prohibition against purchasing from a related party to complete a 1031 exchange. 

Right now I'm keeping it because of appreciation and not sure if I want to sell for now, would need to do 1031 exchange. 

I took no money from the cash flow (when there was any) and I never made a late payment to the bank.This fall, nearly 12 years after the bank gave me that house, and over 15 years after I knocked on that door - after evictions, vacancies, insurance claims, and never taking a dime out of it - I sold that house and placed all of the proceeds in a 1031 exchange.

Well 6 months + later, still no rate cut in sight and I think it won't happen sooner than Nov.Ok then your talking about a fund that might buy defaulted paper in the secondary market with the thoughts of either reinvigorating the borrowers or foreclosing and selling the asset and there by creating the returns.  ?  

My goal for this post is more about getting advice/insight from people who have already done it.

Does anybody have insight on how we can reach higher rents or how the rent value is determined?

Any insights would be greatly appreciated!

Be sure to check out the free tools BP provides to help analyze deals you may have and also market insights.

How Tiered Returns Can Help Structure Private Lending DealsHey BP community,I wanted to share some insights on structuring private lending deals, particularly when working with private investors to fund real estate projects.