Offset profits of a flip w/ a home we'll live in for a year? Help

[K F.]

Hi Everybody! I need to get a question answered ASAP because my accountant isn't getting back to me, so I figured I'd try out asking the BP community. We would like to make an offer on a townhome that will eventually be an investment property. We would like to live there for a year or two and then rent it out. My question is this, we did a flip this year and profited around 130K and need to buy an investment to offset that profit. Can we make this property count as that if we fake a lease with a relative and keep our address where it is? 

We will be putting 25% down on this property and all the numbers work perfectly to cash flow $700+/month. 

What are our options? Thanks!

[Joe Martella]

No wonder why your accountant is not answering.  Faking a lease is fraud.  This is a site about doing honest business.  There are so many tax benefits with real estate, there is no need to be a cheat, if you are doing it right.