“Material Participation”.

Flips still move fast, but rising material costs and longer timelines are squeezing margins.Some investors are layering alternative funding (bridge + rehab draws) so the money arrives as the job progresses.Would love to hear your go-to funding structure when costs creep up.

From a tax perspective, the IRS typically allows pre-rental work (like the hours you spent getting the property ready) to count toward material participation if it’s directly related to getting the property ready for rent.

I’m in the early stages of my real estate journey and joined Bigger Pockets to connect with other investors, learn from people with more experience, and surround myself with individuals who are actively growing in this space.My background is in renovations, and I run Precise Home Renovations LLC, which has given me a strong understanding of construction, materials, budgeting, and project management.

That is pretty much the point of my post; since I only have experience with full-service PM, data from other investors’ experiences with other alternatives would be extremely helpful in doing such an analysis. 

Are there other alternatives?

Would anyone happen to have experience with alternative financing options like HEI (home equity investment) companies that would allow us to continue living in our home?

The only thing that offsets capital gains is capital losses.If your main goal is avoiding capital gains when freeing up cash for a down payment, you might want to look at alternative strategies — for example, using a loan against a life insurance policy or borrowing against your investment portfolio.

Alternatively, I would like to know if I will need to repurchase the eBook in order to regain access to this additional material.Thank you for your attention to this matter. 

@James Friar With today’s price of construction materials you will get way more bang for your buck with existing construction.