The other benefit of converting it to a mortgage is that it will be more valuable if you resell the loan.

If you are able to make considerable improvements in those first few years while living there, being an owner occupant during that time also allows you to take out a HELOC on the property much more easily than on something that's already a rental, giving you valuable access to capital for subsequent projects.

I have a property manager actually do the showings, but any issues like plumber , electrical is a phone call away.The only challenge is it's a commercial loan, which requires more down, higher rates and shorter terms. 

Scope of Work:Initial Assessment: Our team conducts a thorough assessment of the property to evaluate its current condition, identify structural issues, and determine the scope of renovation required.Design Concept: Collaborating with architects and designers, we develop a design concept that blends contemporary elements with the historic character of the row house, maximizing space utilization and optimizing layout efficiency.Structural Repairs: Structural repairs and reinforcements are undertaken to ensure the integrity and stability of the building, addressing any foundation issues, roof leaks, or structural deficiencies.Interior Renovation: The interior of the row house is completely renovated, including the removal of non-load-bearing walls to create open-concept living spaces, installation of new flooring, upgrading electrical and plumbing systems, and installing energy-efficient fixtures and appliances.Kitchen and Bath Remodeling: The kitchen and bathrooms are transformed with modern finishes, custom cabinetry, quartz countertops, and high-end appliances, creating functional and stylish spaces for daily living and entertaining.Historic Preservation: Special care is taken to preserve and restore original architectural features such as exposed brick walls, decorative moldings, and hardwood floors, enhancing the property's historic charm and character.Exterior Enhancements: The exterior of the row house receives a facelift with fresh paint, repaired masonry, restored windows, and landscaping improvements, enhancing curb appeal and contributing to the overall aesthetic appeal of the neighborhood.Quality Assurance: Throughout the renovation process, our team adheres to strict quality control measures and standards, ensuring that workmanship meets or exceeds industry best practices and building codes.Finishing Touches: The finishing touches, including interior decor, lighting fixtures, and hardware, are carefully selected to complement the design aesthetic and create a cohesive and inviting atmosphere.Timeline and Budget:The single-family flip project in the Philadelphia row house is estimated to be completed within [timeline], with a budget of [budget].

🧮It sounds like you have these priorities for your next PNW property besides the standard FI road map:- Something that has positive ROI (appreciation + cash flow + tax deductions + loan paydown) purchased at $1M with 20% down and ~6.8% interest.

Yes there are loans specifically for STRs if you need any help with that let me know.

If a loan gets called, my end buyer is totally screwed because I don't have the resources to pay the bank or refinance.

If I take over this loan through a subto purchase, does the tax exemption remain in place or would I have to start paying taxes?

Hey Mary,Buy a house as a primary residence with 3% or 3.5% down using a conventional or FHA loan and then get a roommate to cover part of the payment. 

Let me here what you would do with the scenario.Purchase Price:40KRehab: 40KTotal Loan From Lender after Rehab: 80KARV: 130KFair Market Rent: 1,200 Mo.If this was your very first purchase, with a goal of wanting to scale, and build a portfolio based around LTR, and Fix and Flips.