Investment Condo

[Daniel H.]

Up to this point in my RE career I have owned apartment homes and been a landlord. I am considering something a bit different for other reasons besides pure investment and I am looking for some advice.

Looking to buy a bank-owned condo for $30,000. I would estimate that it could sell for $70-$80k in the future. Mainly want to hold it for now and use it as a second house in my town since I have family that visits regularly who could stay there for free instead of staying in hotels. When the market improves I could sell. I do not worry about carrying costs since I will get a good deal of use out of it. I have one family member who will split the purchase with me so I would be out $15,000.

My question is mainly how this will affect my taxes. Can I classify it as a vacant rental unit and take all my usual deductions, depreciation, etc?? Would it make it easier if I purchase it myself, that is an option too.