Please do not focus on the loss on the transaction (other than it impacting the conveyance tax). 

We have one LLC in Maine that we run all our business transactions / leases / it’s own business home insurance through for that house and we transferred ownership of the home to the LLC on tax records but the LLC didn’t pay for the home and the mortgage is still in our name.

Look for a creative CPA....some of that might depend on when the transaction happened or will happen, not when you actually get the money.   

Hi all, with cap rates in most medium sized markets at 5 cap, and those that are transacting around this cap rate, what is your plan?

Either your property is a true 3 family, or an illegal one.

I rented the then illegal basement suite and rented a room to my girlfriends which allowed me to live there for free.

This property had a very nicely renovated main floor, an illegal basement suite and a heated oversize garage.

This property had a very nicely renovated main floor, an illegal basement suite and a heated oversize garage.

The house has 3 bedroom and 2 bathrooms on the main floor, a separate illegal basement suite with 2 bedrooms 1 bathroom in the basement AND an oversize double garage with a 1 bedroom carriage suite in the backyard.

But, you'd get the exposure to the transactions.