Also, you will have additional occupancy tax depending whether you are in the city limits or not.

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

And you would get to indefinitely defer all tax on the gain from the sale.

You'll want to put together a personal financial statement (basically lists of all your assets and liabilities) and have your tax returns ready.

Instead of evicting them, i was thinking is there some way that I could rent it back to him for very cheap (mainly to cover just the taxes/ insurance) ie 2k a year rather than the going rate of 2k a month for similar properties.

Some homes even come with tax breaks or city funding to help cover the costs.

The way I see it, the positives are that the municipality takes the burden of finding the tenant, rental agreement with the municipality is for are for at least five years (this might be a negative for some) and you'll be exempt from both property and capital gains taxes.

Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

NJ has the highest taxes per capita in the country so high taxes are expected especially in Northern NJ.

Another option is investing in real estate through partnerships or fractional ownership, focusing on properties that yield cash flow or appreciation potential.For long-term growth, consider diversifying into assets such as private equity, tax liens, or even certain types of real estate that offer both capital appreciation and income potential over time.