I’ve had a few conversations lately with people who just sold their primary residence and immediately started stressing about how much tax they’ll owe on the gain.Here’s the part many homeowners don’t realize:Section 121 of the tax code allows you to exclude up to $250,000 of gain if you’re single, or $500,000 if you’re married, as long as you meet the ownership and use requirements.For a lot of people, that means no tax at all on the sale of their primary home.Of course, details matter — how long you lived there, when you moved out, prior rentals, improvements, and timing can all affect the calculation.

What assumptions are you stress-testing the hardest right now?

I have watched strong deals become stressful simply because the financing plan did not match the investor’s timeline or exit plan.

Lease options, when done right, tend to decrease risk and increase profits.  

Cheap finishes create more repairs, more downtime, more stress, and more equity loss every single time.

If liquidity is tight, I’d either renegotiate the price or look for something with stronger day-one cash flow so the deal feels less stressful.

The same can be said for the other boroughs and surrounding suburbs.It is still totally realistic to get started but it seems to get more challenging each year due to flattening or decreasing inventory (leading to higher prices).Uptown is the best option for househacking in Manhattan.

On your deal analysis, do stress tests. 

But once portfolios grow, the hidden cost is usually time, stress, and operational inconsistency — not just vendor pricing.

Most landlords do this at every turnover anyway, since you never really know how many copies of a key exist.It’s a tough lesson, but going forward, a written lease and a deposit, even with friends, will save you a lot of stress or prevent you from this kind of headache.