Where the confusion exists is that you can not deduct it as a a mortgage expense of your principal residence (personal itemized deduction).

With traditional Airbnb investing where you purchase the property and househack or just airbnb out the whole house/unit, you OWN an ASSET that is appreciating and therefore building equity, capitalizing on major tax incentives, paying down your principal, etc.and you have several exit strategies .. you can sell, refinance, Airbnb, long-term rent, mid-term rent, flip, BRRR, you name it.

If not, attorneys cannot bind anyone by signing contracts as they are not principals to the transaction.Either way - if you had a contract SIGNED BY SELLERS AND BUYERS without any back up buyer language then yes I believe you have a case against the sellers/listing brokerage.

And make sure your talk to your principal broker before you get into wholesaling. you can get in big trouble out here in Oregon if you have a real estate license and wholesale.

Also don’t forget about the principal pay down/equity being built from your tenants 😀 A common way to calculate a good deal is the COCROI aka cash on cash return on investment.

Also don’t forget about the principal pay down/equity being built from your tenants 😀 A common way to calculate a good deal is the COCROI aka cash on cash return on investment.

If a borrower stops paying on that first mortgage, and then the lender goes to foreclose, any equity that might have been had in the property is now gone because default interest, late payment penalties, legal fees, etc will eat up anything left after the principal balance of that first lien is paid.

Once the down payment + principal payments from buyer equal the 150k then the rest of the money is taxedNot a cpa and one can confirm above but this is my understanding

Also, most e&o policies do not cover you when you are a principal to the deal.

PITI is Principal, Interest, Taxes and Insurance.