My 250K tax benefit will run out before his lease does on the 2 of 5 rule, so it might be a good time for me to sell - and help him with a lower rate than banks can give while giving me income until he refinances.

Appraisal for our house value $ 200,000Step # 1 - Cash out refinance $ 140,000Step # 2 - 1031 sale of the house for $ 200,00, so we pay back $ 140,000 to pay off loan for Cash refinance.What happens with $ 60,000 left do put in escrow or third party and now we need to buy new property for $ 200,000 or higher to avoid capital gains tax?

Hi Jacob - I have a network of partners from financing to tax strategy, REI coaching, etc...who can help answer a lot of these questions and get you some guidance. 

New construction offers a unique blend of potential high returns and control over the investment, making it an attractive option for those looking to diversify their portfolios.The Advantages of New Construction InvestmentCustomization and Control: New construction projects offer investors the chance to tailor properties to meet current market demands, ensuring higher occupancy rates and returns.Energy Efficiency and Sustainability: Modern constructions come with the latest in energy-saving technologies and sustainable materials, appealing to a growing eco-conscious tenant base.Lower Maintenance Costs: With everything brand new, the initial years following a new construction project see significantly lower maintenance costs compared to older properties.Tax Incentives: Many regions offer tax benefits for new construction projects, especially those that meet certain environmental or economic development criteria.How to Approach New Construction InvestmentEmulating Buffett's investment strategy involves careful market research, understanding local real estate dynamics, and potentially partnering with experienced developers.

Do you want to build monthly cash flow, stack big checks (flips), smaller checks (wholesale), or tax advantages?

It's relatively affordable, strong tech and industrial job growth, landlord friendly, low property taxes, and not state income tax. 

I was curious because I won't be able to have down payments and planned on using what I can affect, the purchase price, to spend most of my time into finding houses using wholesaling strategies to try to get the total loan amount at or below 70% of the ARV so that I could maybe avoid the down payment.

We undercut market rent and keep our tenants very happy in order to avoid vacancies)

Hi Bigger Pockets Community,New member here...Im looking for some advice on whether I should be classified as a REPS or not for 2023 Tax year as my CPA isnt much help on determining if I should make this designation.

Scenario 1: Condo conversionI'll skip all the renovation details and get right to the point - reasonable net profit from this project would get me around $863,000 which, after LTCG tax would be around $733,550.