You want to make sure the project is going to be profitable, especially if you are taking on short term debt. 

Together, we negotiated favorable terms with the seller, ensuring a beneficial deal.

All this to say that you should work with detail-oriented experts if you really want to go down this route, because it's easy to get a little sloppy and end up with a much bigger tax bill than you expected. 

What strategy are you going after and what are your long term goals?

In terms of new construction, a couple things to be aware of in San Luis Obispo County are water shortage issues and development fees/taxes which can significantly increase the building costs.SLO city and the neighboring cities are particularly diligent on their water usage, as most of the county's water supply comes from three surface water reservoirs and a groundwater basin.

Investment Info:
Mixed-use building

Purchase price: $405,000

Cash invested: $20,250

Mixed use investment. 2 residential units with 1 storefront

What made you interested in investing in this type...

Tax treatment on short term stuff is an issue. 

Be careful if the actual contract has any terms about assignment or allows their private access to the home before closing, as many "cash" buyers out there try to tie up your house for a low figure, then sell it higher to someone else before they decide to close it with you. 

Here are some tips and insights to consider as you begin building your real estate portfolio:Options:Refinancing: If you have equity in your condo, consider refinancing to access funds for future investments.Investment Loans: Explore options like conventional loans for financing future rental properties.HELOC: Depending on your equity and financial situation, a Home Equity Line of Credit (HELOC) could provide flexible financing for down payments or renovations on new properties.Build a Financial Strategy:Budgeting: Create a detailed budget that includes mortgage payments, property taxes, insurance, and maintenance costs for your rental property.Cash Flow Analysis: Calculate expected rental income versus expenses to ensure positive cash flow.Emergency Fund: Set aside funds for unexpected repairs or vacancies.Research the Rental Market:Location: Choose rental properties in areas with strong rental demand and potential for appreciation.Tenant Profile: Understand the demographics and preferences of renters in your target market.Market Trends: Stay updated on rental market trends and local regulations affecting landlords.Property Management:Self-Management vs.

What do I need to do in terms of remodeling and permits?