A lot of my friends have become exceptionally wealthy holding houses.

For a single person you may exclude 250,000 of gain; however, for a married couple you may exclude 500,000 of gain.The one exception is that you will be subject to depreciation recapture on the depreciation that was taken or was allowed.Andy Chu, The first part of your post is correct in regards to the 2 of 5 years rule.

Especially in my area, I don't see prices rising much more, except for in niche neighborhoods that are currently being heavily developed.

As the argument goes, the S corporation can establish a salary or bonus for its stockholder-employees, and pay social security and medicare taxes only on the salary or bonus.Issue #3: Exceptions to Passive Loss Rules, We are the high earner couple over $150K AGI so we are getting ZERO tax deductions for rental losses.

It's kind of like wholesaling, except I have actually closed on the deal.This strategy worked great when the market was appreciating at a crazy rate.

***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.https://www.biggerpockets.com/forums/776/topics/960183-what-they-dont-tell-you-about-cheap-rental-properties?

Hello, I am thinking about selling our Investment PropertyWorth $150,000Purchased for $105,000Down payment was $32000                               (Or we could keep renting it out rental profit is $305 a month(selling seems more right))Owe $55,000-----"True Profit" $49,000---------------------------Want to use $81K (DP + Prof) to bring down DTI---Next Step---Refinance out of (VA/IRRRL) Loan so I can get my VA benefit back (Disabled vet = no funding fee; no PMI, etc)Property 4 Plex3 of four units rented (son lives in 3rd and we have a room - remote work)Mortgage is $3100 mthly with a 2.25% interest rateRental income is $4000 ($+/-900 profit a month)PURPOSE: Refi with NEW DTI to purchase a second Small Multi-family at new work location for the VA Benefit**It is worth $700K now and we owe $450K** I'd really appreciate any feedback or thoughts, would love to be debt free except for real estate but if there is some thoughts on HELOCing out of the IRRL and maybe getting some money to buy down % on the new 2/3/4Plex - I am all ears.

All I can share is my experience, without exception if a tenant is late once, they will be late again in the future.

Houses are gone instantly (unless they are priced bad or have problems) when they hit the market, everyone is griping that there is nowhere to rent except apartments (and they are right.) .

Trust me this is not worth getting into a legal battle over trying to make an exception, this is a business that is heavily regulated and guarded to protect all tenants rights.