Leveraging equity does involve some risk, so it's important to have a sound strategy to avoid overextending yourself.

As you embark on this adventure, it's important to equip yourself with knowledge and a solid strategy.

And while a 1031 exchange isn’t an option, some people explore alternatives like installment sales to spread out taxes or even tweaking the investment structure so your returns are treated as interest instead of equity.There are definitely some creative strategies out there. 

My first suggestion is to get them to write down an investment strategy. 

My idea to achieve this is to convert the studio into a short-term rental.I’m trying to determine if I’m forcing this deal to work by relying on the short-term rental strategy or if it’s a reasonable approach given the numbers.

Great tools that get updated regularly.I am on the lending side of things and would be happy to hop on a call with you anytime to discuss financial strategies and help answer any questions you may have about nearly any loan product available to help you on your journey, even if they are not products my capital partners offer.We are all here to help you learn and grow.

I handle dispositions and tech; my business partner is more experienced with exit strategies and the finer points of investment.Hope this helps!

But his strategy is all wrong.

I got into RE investing utilizing the same strategy as you're exploring.

To minimize upfront costs, explore down payment assistance programs, creative financing strategies like seller financing, or rent-to-own agreements.