In addition to that, you would also qualify to do a 1031 exchange because you would be converting the property to an investment.

However, if you converted the property to your primary residence and qualified for the exclusion when you sold the property, you wouldn't get the full exclusion; you would get a proration between the number of years it was held as a rental and as your primary residence.

We spent about a year studying before we made our first jump into buying our first property but eventually you just have to do it.

@Gonzalo PerezWelcome Gonzalo, A lot of investors hit a wall in high-cost markets once they try to scale BRRRRs or flips, which is why many eventually look toward Midwest markets where entry prices are lower, value-add still exists, and deals can actually cash flow after refi.

Eventually, you'll find someone who's willing to come down to your number.

@Bryan SimmonsHey Bryan,Great plan and yes that is a house hack, tax wise it is a mixed use property so one part is personal and one part is a rentalIf you are remote pick the market and run the numbers, but remember the tax benefits only apply to the rental portion so you want strong income and clean trackingStarting with a 2 to 4 unit is great because you can use low down payment financing, and once you rent units out you can deduct legit rental expenses like repairs, insurance, utilities allocated to the rental side, and rental portion mortgage interestBig tax win is depreciation on the rental portion, just make sure you separate personal vs rental expenses because only the rental share is deductibleIf you move out later and convert it to a full rental your deductions expand, but depreciation lowers basis and can trigger recapture when you sell unless you 1031Also watch passive loss limits since high W2 income can restrict how much loss you can use each year

The app automatically uploads the receipt image to a project-specific receipts folder, which we can then convert to a transaction.3.

Eventually the case was settled for $250K. 

So, eventually things are likely to change again. 

If you’re focused on fix & flip and eventually building a rental portfolio, one thing I’d suggest is finding a market where you can still buy properties at prices that make sense for both flips and rentals, because it sets you up for future BRRRR or house hacking moves.