I worked full time in corporate america for a long time and my drive in to work and back home was listening to podcasts, my lunch breaks were reading books, my evenings and weekends were swinging a hammer.

In reality, if you’re not budgeting for OpEx, that money is already spent—it just hasn’t left your account yet.That’s where Break-Even Occupancy comes in.

Break it once, and people remember.

To qualify as an RE Pro you must:1.

That post does a killer job breaking down the STR Loophole!

Find a local RE meeting.  

Getting rid of time wastes is a must in my life if I want to be at all successful in my RE investing career.

The easiest way to reconcile everything is to gather year-end details, including total interest paid, year-end principal balance, escrow balance, and amounts paid for taxes and insurance.

If we re-rent it and sell later, we likely won’t qualify for the exclusion and would be looking at taxes on the gain (or a 1031 at that point).Numbers (rounded):Market: high-demand, expensive area; prices have moved fast historicallyCurrent rent scenario: about break-even to +$1,000/mo (before cap-ex and vacancies); plus mortgage paydownEquity: enough that a sale could fund 3–5 small local rentals in cash in my areaFamily consideration:My wife would like to keep it for our kid to rent/live in someday, but that’s ~10 years away, and it’s possible they may live in another state by then.

OPTION 1: OPTION 2: When Seller Uses RE Agent & You're Using Property For a Rental When Buying Subject To & Selling to Tenant Buyer Pro: Doesn't require specialized knowledge Pro: Little competition "Adequate" cash flow - Nothing Exciting Can be little $ down You get appreciation if property goes up Can do Unlimited number Can Get Started Much Sooner Get down payment (Cash $$) back immediately Great Cash Flow No Bank Approval Needed No Maintenance or Repairs Con: Have To Have $45,000 Cash for Down Payment Con: Have To Have $15,000 Cash For Reserves (just in Case) Have To Have $15,000 Cash for Closing & Carrying Costs Due on Sale Clause Have to Get Bank Approval Must learn the technique Can only do 4 -10 properties depending on bank Competing with everyone else Requires 20% Down & other requirements If AC breaks - you fix it If roof needs replacing - you pay for it If toilet clogs - it's on you If house gets trashed - you un-trash it You take loss if property goes down in Value Tenant Can Trash The House When Seller Uses RE Agent & Using Property For a Rental When Buying Subject To & Selling to Tenant Buyer Asking Price MLS $225,000 $225,000 Balanced Owed $223,969 $223,969 RE Agent 6% $13,500 $0 No Agent Involved Seller Brings to Closing ($12,469) $0 So No fees Asking Above ARV $0 $0 Seller Walking Money $0 $0 Sometimes Walking Money If I Use ConventionalFinancing If I UseSubject To Asking Price MLS $225,000 $225,000 Amount Down - 20% $45,000 $100 (I Give $100 Down) New Loan Amount $180,000 $223,969 I Take Over Loan Title Report $600 $600 Closing Costs $1,250 $1,250 Monthly Payment $1,151 $1,225 I Take Over Existing Payment