It’s a side of real estate that isn’t always talked about—but should be.Over the years, I’ve worked with countless families—people who never imagined they’d miss a payment, much less face a default notice.

So be strategic about that and maybe get some consults from different people about how they have their catagories set up.

Since this is a side hustle for now, i can't go to the property, especially if it's STR which is more frequent and probably further from me.

But here’s how each scenario could look from their eyes: If they see it as income:You could be liable for income tax on the $250K credit.They’ll want to know why you got $250K for “free.”If they see it as a purchase price adjustment:If properly documented, this could just reduce your cost basis in the property (not taxable).But it must be treated as a price reduction, not a side payment.The contract price would need to reflect that somehow, which your lender doesn’t allow.If you use it all for capital improvements:If you document every dollar spent on legitimate property improvements, it strengthens the argument that this was not income, but an adjustment tied to construction costs.Key Protections You Must HavePaper TrailDeposit from you to builder Addendum signed with builder Transfer from builder back to you (post-closing) 👈Document this clearly and tie it directly to a “construction credit.” 

That’s probably the gold standard you should set.

I have $50k in saving can use some of it for down payment; $20k aside for closing costs.

Set expectations right away and stick to them. 

I had leads in my phone, email, sticky notes, open house sheets pulling that all together and organizing who was cold, warm, or past clients took forever.Second headache was setting up all the follow-up reminders and drip campaigns so they actually made sense and didn't feel spammy.

Putting the divorce aside that's an amazing place to start.

Hey Kyle,I’m a local investor and agent in Pinellas county and have closed on more STRs than anybody the past few years now.Theres a very specific recipe/buybox to be sure you set yourself up for success.A few questions I’d want answers to in order to better answer your question:1) Do you know what zones are permitted to STR in Treasure Island?