This recapture effectively reduces the property's adjusted basis, increasing the taxable gain on sale.Proper planning and tax strategy are essential to balance the upfront benefits with the potential tax implications at disposition.

@Christina VenegasIf your goal is primarily cash flow, 20% down.If you prefer a balance of cash flow and a bit more liquidity, 15% down.Personally, I would prefer the lower rate and higher cash flow but you should do what makes more sense for your situation.

Estimated tax payments are due April 15th, June 15th, September 15th and December 15th / January 15th.If you see that your tax burden increases every year, you may want to see if you qualify for the safe harbor estimated tax payment(110% of prior year tax) and then make the remaining balance due by April 15th with the extension.Best of luck!

It can take a long time to get everything in order and you don't want to be under the gun.I will say right up front there will be no life balance for this project IMHO.

Quote from @Mackaylee Beach: It's important to strike a balance between having adequate reserves and ensuring your capital is working for you.

You can use a variety of Creative Financing such as a WRAP.WRAP – A wraparound mortgage "wraps" around the seller's existing mortgage, meaning the total loan amount includes the unpaid balance of the original mortgage plus the additional funds needed to finance the purchase.

Hoping to get feedback from folks who know the Dallas market well.Situation & Goals:Family: Me, wife, and 3 elementary aged kidsWork Location: Irving/Coppell area — prefer to stay within ~30 min commuteStrategy: Buy a property to live in for 1–2 years, then rent it out and repeat the processNumbers:OK if property just breaks even once we move out (cash flow neutral)Strong home appreciation is more important than short-term cash flowFeatures I’m targeting:Good school districts (important for both family and long-term demand)House hack potential — ADUs, in-law suites, small multifamily, rentable layouts, or something that transitions smoothly to a rental after we move outAsk:Which neighborhoods or school districts in/around Dallas should I be looking at that balance family needs + investment upside, all while keeping commute reasonable?

At the moment my ultimate goal is to lower the payment so when I convert this property to a rental eventually it is in a better spot to cash flow.Current Loan - 30 yr loan on a condo starting July 2023 Remaining balance - 365kRate - 7.25% Payment - 2625 Proposed Refi - 30 yr loan starting December 2025 (90% LTV)New Loan Amount (escrowed) - 376.4kClosing costs - 4584Rate - 6.35% Payment - 2348 Savings 277/m

The 2nd lien balance is now $24, 000 +/- and The 2nd lien Note holder wants to move on from this loan and not have to deal with them any longer.

It's always a balance of how much time are you asking vs what value you could add to the teacher.