You may find that lenders expect to see the rents on your tax returns for 2 years in order to count the rents.You may have to talk with the commercial side versus the residential side.

Check with your county tax assessor. 

North of town, west of I-5: 95219 Brookside (high end gated communities; Mello Roos school taxes - so high taxes; Lincoln School District; some peat dirt problems on streets; don't know about foundations); Spanos Park West (some gated; lots of huge houses; basically built for commuters just west of I-5; Lodi School District) North of town, east of I-5: 95209 Spanos Park East, Colonial Heights (most Lodi Unified Schools; though small pocket of Lincoln Unified) North of town, east of I-5: 95207 Parkwoods and Lincoln Village (Lincoln Unified Schools; was considered best family area due to Lincoln Schools, but lots of flat tops and built since the 1950s so electrical can be kind of minimal - 1 outlet in kitchen instead of enough to use multiple appliances); lot of remodeling in this area.

Lots of risk that you can't control and it is taxed as Ordinary Income plus the IRS will see you as self employed so you will pay all of the Social Security tax and perhaps a 2.5% extra tax if you make over $250k. 

Based on my projections I assume I would earn a negative cash flow between $400-$1,000 annually lol. 

However, I cannot go with the traditional leading since banks need 2 years of tax returns as self-employed.

My accountant is telling me that we should just keep it on my tax return for 2023 as a rental, and not primary, since I have too much income from the studio I airbnb.

As an adult, you could work two jobs, 30 hours each, and easily earn $5,000 or more a month. 3.

I had wrapped my head around residential not around commercial, But to me the deal seems amazing - you guys tell me 8000 sq. ft building7 storefronts on an active downtown street (all rented and currently have tenants)34 unit mini storage in back lot (29 units rented - the rest of the unrented are being used by the current owner)Asking price is $798,000 and owner is ok with seller financingAfter sitting with them today the owner who is 83 said he is ok seller financing and verbally agreed to $715,000 and a 4% interest rate, 30 year note, $100,000 down payment, no early payoff penalty - my lender and real estate agent both came back valuing the property as it sits at $840,000Income = Rentals ($5075) Storage Units ($1935) = $7010speaking with the owner he hasn't raised the rent on either the storefronts or mini storages for almost 10 years - looking at comparables in the area we believe we can raise the rent and storage units easily to push the income up to $10,000 a month 4 of the 7 Tenants have been there 5 years plusCost = Including estimated payment, taxes, insurance ect. would come to a monthly of = $4450that would cashflow $2560 a month at its current with the potential after purchase and rent adjustments cashflow $5460 a monthPending an inspection the property looks in good shape with little to none improvements needed at this timeA quick background I have had rentals before on the farm we own, three houses we rented out so I have some experience) My QuestionsIs this a good deal???

How can I avoid capital gains tax if at all?