Michael, Every bank has different rules.

I try to not have a lot of "rules", but writing out some expectations can go a long way in resolving conflicts down the road and hopefully not ruining relationships/ friendships.happy to go over more specifics with you if you'd like!

A fourth got four accepted clients, and during the lease signing, they all bailed and the client smartly pivoted to MTR.

@Jon Fletcher There are basically two potential options. 1) Amend the tax return in the year of purchase and prove you used capital gains to purchase the property and 2) Sell the property to an OZF, follow the 20% related party rule and then the structure of the sale of the property to be able to reinvest the gains.

If you violate any of these rules you could blow up your IRA or 401k and the IRS could force you to distribute all of the assets in the IRA or 401k.

Of course, many investors bend/break this rule, but that's another risk.2) If your bid wins the foreclosure auction, you then have to deal with getting rid of any occupants - who may steal/damage everything they can in retaliation:(3) You MUST have a great crew on the ground that can minimize surprises - not easy to do on your first deal.Regardless if you buy a foreclosure or other property, read our copy & paste advice below:-----------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Garland has some pretty onerous rules for STRs and even requires a license and inspections at every lease turnover for LTRs which has put me off investing in the Garland/Mesquite market period.https://www.garlandtx.gov/DocumentCenter/View/15034/STR-Info...

All units have vinyl plank flooring.1% rule would make the listing price 570,000 using my LTR data.

.✅ An agreement must be in place between the buyer and buyer’s agent before any properties can be toured.It should be noted these rules are in line with the NAR settlement and is an MLS participation requirement, not state law

Buffet stuck to his rule of not investing in something he doesnt understand.