If the purchase is done in cash, as you mentioned, they’d have more flexibility, but they’ll still want to carefully consider the tax and legal implications of the subsequent sales.I hope this helps, and good luck with your client’s deal!

Weigh the long-term benefits of the low mortgage rate you have versus selling and getting $500k from a sale exempt from capital gains tax.

The patent on the 30 year with taxes and insurance was 3900 or so.   

How does this look from a tax perspective.

This is down the alley of tax liens.Yes, deduct the lien from a sale price.

Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

It's almost like they tack on a few hundred dollars to the order and forget to charge sales tax

In California there is $800 franchise tax per LLC per year, which discourages a lot of RE investors from getting an LLC.

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

Britt,My firm has evaluated some smaller properties (under $500k) in the past for cost segregation, and it generally does not cost justify moving forward, since the benefits are small, and typically the tax liability on the income is minimal if any.