In the process of BUYING a PURE Option to buy a SFH subject to an existing loan (at a lower fixed long term interest rate)Let say the OPTION "Strike price" to BUY the property IF or WHEN the OPTION is EXERCISED is $300K The seller wants $60K to sell us the OPTION.

Share articles or insights together to make it a collaborative effort.Additionally, if you're considering house hacking, this alignment becomes even more critical.

This is Nanda.

This community is full of knowledge, support, and inspiration for all experience levels.

I can't wait for the next one and to share my experience for anyone who is interested.

I've been researching this quite a bit and am looking into acquiring an STR that I would actively manage and would keep average stay at 7 days or less.

So depending on your experience, if you are bringing a piece of land and some plans, I the outside investor would want likely between 80-90% of the equity if I am providing all the funds for closing, the experience, and the reserves, just to be honest on something like this. 

I'm not the first to talk about this strategy and won't be the last so feel free to chime in here.

A CPA can make sure you maximize those benefits (like depreciation, mortgage interest, repairs, PAL, etc.) and avoid costly mistakes.

.- Consider the loan terms, interest rates, and any prepayment penalties.