I am guessing you mean what happens if the sales price of your house is not enough to cover taxes owed.

After hurricane Ian Florida saw drastic increases in insurance rates with lots of insurance providers going out of business or pulling out of the state. There was a mad scramble for anyone that owns real estate in Flo...

The only thing missing is clarity on financing, and that’s normal if you started by paying cash.From the tax side, leverage is usually your friend.

It’s just not how the tax world works.

Some of these people have been sitting on it for 20, 30, 40 years and have done nothing with it but pay taxes on it. 

If your goal is lowest payment / maximum cash flow long-term:DSCR lender AFTER stabilization.Once the maintenance and value-add is done and rents increase, a DSCR refi will give you:30-year fixedInterest rates typically lower than bridgeNo tax returns neededThis is usually the best cash-flow play, just not the fastest to close on the front end.4.

Is this more of an income tax strategy?

Is the current owner over-paying for any expenses (See "Expense Comps" below)? 

@Diana Palavra just about any new business will have startup costs.Your's should include learning about local pricing.So, suggest you offer to pay 3-5 contractors to walk a property with you (take VIDEOS!) 

. • Cash-out refinances are helping investors reposition portfolios.Some landlords are using equity to pay off higher-interest debt, consolidate multiple mortgages, or finance renovations that boost rent potential.