In the process of rehabbing one of my first brrrr’s it is a single unit converting into a 4 unit Pp 55kRehab 150k 205k all inRent 5500 a month Comps are 350kWill this be a easy refinance ?

Hi BP,I am about to close on my first deal beyond my primary residence which will be converted into a rental next year.

@Jonathan Greene I did exactly that earlier today, and the assessor told me that the taxes would not go up if I converted the 2 bedrooms and didn't add any sq footage.

The rents on those are about $50-75 per month lower than homes where furnace has been moved up into the attic space and that closet converted with plumbing etc been added for a stacked washer dryer.

As you and @Carl Fischer both mentioned - converting passive rental income into ordinary income subject to SE tax by way of paying your PM company a management fee could be costly if the proper steps aren't taken or if your tax situation doesn't allow for any benefit of your proposed structure.You also want to be sure an S Corp election is right for you. 

You need a third-party note buyer.Yes, these note buyers will be looking for a discount, but that's the cost of converting an income stream back into cash ahead of the agreed payment schedule.

But a good portion, even now, are converting and the clients are very happy.

This could be a rental, but I really think that the real value is in converting it into a TIC.

I've seen conflicting reports that says if you use any portion of the advance for COVID related expenditures it converts the entire amount into a grant, not needing to pay back anything.

@Berridge Thomas To tack onto what @Dave Foster is saying if you converted to Roth... you now have stepped up your basis and created another option where you can pull your basis tax free (because you already paid the taxes).