Quote from @Bruno Demarco Quiroz: Hi Amy,When you say “a property that will pay for itself,” do you mean covering HOA fees and utilities, or also the mortgage?

Your buying power isn’t just the loan amount, it’s the total project budget.With FHA at 3.5 percent down on $300K, your out-of-pocket down payment is roughly:• $300,000 × 3.5 percent ≈ $10,500• Plus closing costs (usually $8K–$12K on FHA in PA)• Plus any upfront reserves your lender requiresYour $50K line of credit will need to cover all of the following:• Down payment• Closing costs• Inspections and appraisal• Rehab• Holding costs during rehab• Furniture if you plan to pad-split or house hack aggressivelyBecause of that, most FHA buyers end up in the $250K–$350K purchase range for a duplex or triplex, depending on rehab scope.2.

Their calculators are easy to use, comprehensive and cover every aspect of any deal you are analyzing.

He covers affordability, AI, and where the market is heading, which made me rethink my long-term approach.This isn’t a one-and-done read for me.

I really enjoy construction, but a few months ago I started exploring real estate because I want to invest my time and money into something that offers the potential for passive income.I’ve done a lot of research, and the strategies that interest me most are Subject-To, Seller Financing, and the BRRRR Method.

Bottom line - best to pay your taxes and not have your inheritance subjected to all of this, right?

(Not good) but they don't care about anything else besides the subject. but if rocket had let's say a .5% or better rate I would definitely try and push the borrower in that direction for a few extra questions.

Also, if the SDIRA invests in a property with a mortgage or other debt, you may be subject to Unrelated Business Income Tax, and that tax rate can go as high as 37%.

.• $60k purchase• $35k rehab• $95k total rehab loan payoff• 15% deposit = $14,250 "down payment"• $126k ARV (confirmed via refinance appraisal, borrower expected this to be higher)• 80% rate/term refinance ($100,800 loan) @ 6.75% [700-719 FICO]• Applied $4k of deposit to payoff for an updated payoff amount of $91k• Cover closing costs with 80% r/t refi + $2k back to borrower at closing (still considered a r/t refi if under $2k) + remaining $10,250 deposit reimbursed after payoff = $12,250 total back to borrower• $4k of his deposit + closing costs for rehab loan = his "cash" in the deal• $1,250 market rents• Total PITI = $765.62• DSCR = 1.6327 I do not see the hold costs.  

The exclusion doesn’t wipe that out, although it does cover most of the regular gain.Every situation can differ depending on filing status and how depreciation was handled, so it’s best to double-check the details with your CPA before listing, just to avoid surprises when tax time comes.