While it’s a bigger initial expense, it aligns well with your long-term retirement strategy and could provide peace of mind for years to come.

Hey Lucas, If you are a first time flipper, I would anticipate 75% on the initial purchase price/ 100% of the rehab financed. 

Any amount over your adjusted basis in the property (initial cost minus depreciation) could be subject to capital gains tax unless you reinvest it strategically.2. 1033 Exchange (Involuntary Conversion): A 1033 exchange (involuntary conversion) is specifically designed for situations like fire, natural disasters, or eminent domain.

8/14 update: Steven Yoak is not a part of this initial post: he has been instrumental and amazing since I’ve started working with him.

Also is there any restriction like time period (at least x months after initiate purchase)?

(some money may still be available from the initial $10K investment.)

.- Furnishings and Decor: High-quality, durable items are worth the initial investment.- Insurance: Short-term rental insurance (beyond renters') can protect you from guest-related risks.- Licensing or Permits: Check if your area requires permits, as some cities have fees for short-term rental operators.Breakeven Analysis: To calculate your breakeven occupancy rate, add all monthly expenses (rent, utilities, cleaning, insurance, etc.).

The property is a full rehab, possibly more, and originally had restrictions from Freddie Mac requiring buyers to live in the home for at least a year, so I initially passed on it.

Owner’s Draws and Tax Implications: Taking owner’s draws to recover your initial equity is possible, but this can have tax consequences.

This creates a negative initial position.