But, if a cost-seg study is done on the old property, you can manage Sec. 1245 recapture tax by doing a study on the new property to confirm it has as much or more Sec. 1245 property.You cannot swap a fully depreciated gas station for a raw piece of land and avoid recapture - you must replace all the 1245 and 1250 property.3) OZ - Sure you can defer your capital gains for a few years into an OZ fund, but the magic of OZ investments is the ability to achieve tax-exempt growth after a 10-year holding period.

— Christopher McDaniel This will be a lender specific question as guidelines are different from HML to HML but generally most lenders would apply it towards the principal balance and the cash to close.

Prior to investing in anything for myself, I also set a clear expectation of a result that I require- mine was to acquire a BRRRR property, which I was able to achieve.

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?

@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.

In real estate, though, it’s a bit of a balancing act.

If they are paying the full balance within the month, I would not be terribly worried2.

If you want to stay in growth mode, selling and rolling into a small multi could balance cash flow with long-term wealth.

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

Under this, he owes a large balance to be paid on top of monthly rent.I previously used a PM, but now I’m collecting directly.