Effectively turning a duplex into a triplex.Does anyone know if there is any issue with doing this?

This appreciation allows you to build equity, which you can later tap into by selling the property or refinancing to buy additional assets.Real estate also offers significant tax advantages.

Not sure if this option for commercial STR coverage is common knowledge among State Farm agents. 

What would a taxation model look like in this scenario?

You can figure out how much your shopping center is worth like this: Value of Property = $100,000 / 0.05 = $2,000,000But here's the tricky part: You don't get to decide the cap rate, it's decided by the market, kind of like how fashion trends decide what clothes are cool.

This allows you to meet the material participation requirements based on your combined activities across all the grouped properties.But yes, RE Pros still have to spend over 750 hours in real estate activities during the year (and more time doing this than anything else) to be considered material.

I think this will be a decent deal.

You bought this with only $30,000 ??????

This is such a good idea.

. $38k Investment I 12% Annual Priority Return I 25.7% IRR I 2.9x Multiple I Hold Time 5-7 years What made you interested in investing in this type of deal?