Opportunity Fund Question - conflicting answers

[Raza Rizvi]

Hello fellow investors,

Hoping someone can provide some guidance. I have a qualified opportunity fund set up and have till May 22nd to purchase a property since I plan to invest in real estate.

My question is regarding being 90% vested in the opportunity fund. It is my understanding that one has to invest 90% of the capital gains into the purchase of the property. So for the ease of math and explanation let’s assume the property i am planning to purchase in the OZ is worth 70k and I have a 100k in capital gain/in my QOF.

Once i purchase the property at 70k, my understanding is that i will immediately have to put in another $20k in repairs to meet the 90% mark before May 22?

The remaining 10% in upgrades can happen in the next 30 months? I understand the land value deduction but let’s leave that aside for now.

Is my assumption correct or can I purchase the $70k property and wait to do the repairs & not worry about the 90% rule before May?

Thanks in advance for the help