Welcome back Sounds like your timing on that Texas flip was perfect, and stepping away for a bit in Costa Rica must have been an amazing reset.

Since the texting 10 DLC / A2P regulations went into effect in October 2023, it reset the marketing channel and now very few investors are texting in bulk due to all the hurdles you need to jump through to get your account approved for texting.For me, keeping my cost per deal low is very important.

And that would be an awesome way to get all of your money out and get out of a problem rental and reset things.

Depreciation only resets for the buyer who makes fresh acquisitions.

In reality, that’s not always the case.I’ve seen situations where:A loan modification gave the homeowner breathing room.A repayment plan reinstated the mortgage.Equity allowed them to refinance and reset their financial footing.For me, this was a mindset shift: foreclosure doesn’t always have to mean “lose the house.”

I do…Income verification & fraud checks → fewer resets and re-marketing.

Because we want to liquidate that property in yr7, to "rinse & repeat" via 1031 into another new inventory, resetting capex too 0, thus keeping in this beautiful zone we call "all but maintenance free". 

(Note: variable rate; watch DTI.)Cash-out refi: one fixed payment, simpler, but you reset your low rate on the whole balance—often a deal-killer in today’s rates.Consider a delayed cash-out after it’s rented if you need more capital later.3) Tax angles (high level):Converting to rental starts depreciation; great for sheltering rent.If you might sell soon, the §121 exclusion (up to $500k MFJ) can be powerful; after conversion, timing and “non-qualified use” rules matter.Interest tracing: HELOC interest is only deductible against the use of funds (e.g., rental improvements yes; new primary down payment, no).Always best to consult with your CPA to run your numbers, so you can choose with confidence.

Thinking of doing this as a “reset”, and then going forward in 2026, start doing some of the things (financially) I should have been doing.I want to max out Roth IRAs for my wife and I, contribute to 529s for the kids, and if there is excess money beyond that, go the brokerage route. 

Or do most of you just assume taxes will reset closer to the purchase price?