What Brie was referencing was if you do something that loses you the grandfathered zoning status.

“However, it’s not like home flipping has become a losing proposition.

The problem with getting what's known as a Property Information Report is that liability for an error is limited to the amt paid for the report no matter how much you lose relying on it. 

A bit heated discussion with one member not happy at all after losing his 10% deposit and a rep from RealPro responding at length regarding the entire timeline of the failed transaction.By the way deposit is 10% NOT $10K, so on a $500,000 listing the deposit is 50 GRAND .

You don't need a HML in the Philly area, you need one who can evaluate the market and Philly is a good market for HML because it's pretty hard to lose money right now unless you buy absurdly high or mismanage your flip or BRRRR.

@Victor ChanSell if:You don't want to be a bay area landlordFinishes are new and the house does not have hardened features appropriate for rentingHold if:You want to be a bay area landlordHouse has older finishes and value wouldn't suffer from additional wear and tear.The amount of risk you take on by renting would be significant and under no circumstances should you hold long enough to lose your step up in basis.

By way of example, single-member limited liability companies or any investment in an entity in which an individual is a director or officer could no longer be held in an IRA.IRAs holding any of the above investments would lose all of the tax advantages previously available to the IRA.

I used a construction loan, which ended up parceling out funds so slowly and erratically that I had to use my own cash to keep construction moving while waiting on funds, and I ended up selling that house at a loss to keep from losing both houses.

Back when I used to flip, I would occasionally lose money on a deal, even with me (a GC) as the owner.....the project takes longer, markets dip a little....oooops.

Thus you potentially lose current year tax shield advantages or you potentially lose accumulating suspended passive losses that can offset future depreciation recapture.