If you’ve owned it less than a year you owe regular income tax on it plus any depreciation recapture.

(Fannie-Freddie just started allowing projected income from ADUs to be counted toward qualification this year.)Just in general, though, any kind of rent appraisal I see here in Colorado -- be it for short-term rentals/Airbnb or for LTR -- are woefully low. 

Is the $1500 income the rent or the cash flow after properly allocating for expenses?

Larger-scale projects like full bathroom remodels, kitchen remodels, or primary suit additions tend to cost homeowners significantly more and return much less on the investment.

Hope this additional info. helps & God bless. 

I will also look at acquiring commercial properties on the market in addition to using tax liens. 

But does anyone have additional thoughts on how I can connect with these potential sellers, especially multifamily property owners?

I just want to make sure I understand correctly, so even though she will be receiving a lump sum in 3 years from the balloon payment (it is an investment property she's selling me, not primary residence), she can't 1031 that because technically when she sold it to me today she became the bank and no longer owns the property, so basically the lump sum paid to her at the end, is the same as a bank making money and therefore taxed as income tax?

Additionally, I am open to partnering with other interested investors, especially those looking to support a first-time entrepreneur like myself.Please reach out if you are interested in advising an aspiring investor or even jointly pursuing a new real estate opportunity.

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.