A 1031 exchange doesn’t apply, but funding through a self-directed IRA can defer taxes, though profits from debt financing may trigger UBIT.To reduce taxes, consider forming an LLC for better expense deductions, offsetting gains with investment losses, or holding the property for 12+ months to qualify for lower long-term capital gains rates.This post does not create a CPA-Client relationship.

A quote with no cost breakdown can definitely be a red flag—it makes it harder to understand what you’re paying for and leaves room for unexpected costs to pop up.

The land is on two tax lots so my plan is to sell the extra lot immediately after closing for a projected $275K.The property on the other lot will be a fix and flip with projected costs of $240K and an ARV of $750K.I plan to use a PML of 2 points and 12% APY for 70% of the total cost.

Quote from @Frank Pyle: My client recently purchased a home with a hard money loan and have successfully rehabbed it for use as an Airbnb rental.

If I can make a suggestion...Yes with 3 points you might be able to get into the 6's - but let me give a quick example:Let's say loan amount is $250k and making some other assumptions, paying 3 points down would cost $7,500 however that might only save $195/mo. 

We have our own design team, contractors, and real estate agency under one roof, which saves time, cuts costs, and improves communication across projects.

I think there is a common misunderstanding that licensed contractors cost more.

Heck, you process debit cards if you insist for 1/10th the cost and non-reversible. 

At the current cost to build estimate $150/sqft, It appears a 1500-1700 sqft new construction will need to sale for around 399,9k to make a decent profit.

So, they make honest mistakes that can still cost you thousands of dollars.- If you try to hire contractor directly, you have about a 90%+ chance of getting taken advantage of.