However, you will buy a specific property, in a specific city, in a specific condition, subject to local rules and regulations.

You should have some good economic reason for converting it.There is no court case or regulations specifically prohibiting this, nor telling taxpayers they can do this, from my experience, but again, you asking this question and it feeling a little "too good to be true" is usually a sign the IRS may scrutinize something like this, especially if done repeatedly. 

In a low rate environment asset prices generally accelerate.

And what's working for you to stay profitable in this tighter margin environment?

I’ve helped a lot of people get started in sober living over the years in almost every state.As long as you truly care about people and want to see them rebuild their lives in a supportive & accountable environment, I’m happy to help or point you in the right directionWhat city/county are you looking to start in?

I’ve also been researching DSCR loans but the rates and prepay penalties are a bit intimidating. if you are available for a call to talk through potentials and maybe exit strategies when considering the various options that would be great.thanks anthony2023209903Quote from @Mohammed Rahman: Hey Anthony, sounds like you guys are sitting on a great opportunity — and I get why you definitely don’t want to touch that 3.25% rate in this environment.

I’d love to hear how you might be able to help or share what’s working best in today’s environment.  

Not what you are seeing.A distressed single-family home in the $300-400K range in Austin is older than 1990 for sure (if not substantially older) and likely requires 40-50K+ in rehab to bring above $2,000/month in rent (or more precisely, to have the chance to do that, in an environment with 4-10% vacancy rate!).

Different environment down there.

Rent control may prevent you from selecting the best tenant, limit your ability to evict non-performing tenants, and not allow you to increase rents fast enough to keep pace with inflation.I live in Las Vegas, and I will compare the environment for investors here versus California.Rent control: NoneTime to evict: 20 to 40 daysNo state income taxes.Pro business and pro landlord environment.Low operating costs (low property taxes and insurance)We have completed over 90 1031 exchanges, most of which were from California.