Real Estate Agent · Washington, D.C. · Member since 2022 · 37 posts · 15 votes
Hey BP family! I plan to buy and hold property in SE and NE D.C. These areas happen to be opportunity zones and I wanted to see if anyone knows whether 1-4 unit properties can be counted as investment properties if secured on a conventional loan and therefore eligible for abatement of capital gains tax. I'd appreciate the insight!
Contractor · Scottsdale, AZ · Member since 2010 · 2k+ posts · 3k+ votes
3y
I actually bought a flip deal last year that at the time, I didn't even know was in an opportunity zone.
As the market has turned I've changed my plans with this one and plan to hold it for at least the 10 years so I can take full advantage of the opportunity zone tax benefits (along with some appreciation too, hopefully)
Based on my experience, yes 1-4 units can be counted as investment properties if secured on a conventional loan.
You really should talk with the city and your CPA though to confirm that same rules apply in your market.