:here's a queston I have most people are probably wondering:Is this person's purchase cost basis the price she bought as a homeowner or the cost when they began to rent it out.As we all know, the values have been dropping so to consider the cost basis at the time of renting sounds absurd to me.The cost basis for rental depreciation can be different from the actual cost basis for the property at sale; the latter is basically "all" money that the owner put into the property (that is over-simplifying things).

Great simplified breakdown on the steps involved in doing wholesale deals.

To answer your initial question in a simplified manner, yes.

Reverse Starker Exchanges are very pricey and complex, so if you really want to "trade up" into something else, just sell your property first and simplify the whole thing saving yourself big $ and big hassle.

I'd go big to simplify my headaches.  

You would think people would realize that it is just a “TV” show, and “maybe” it has been edited, simplified, and dramatized for effect and ratings…

This is a simplified answer to your question… But I think covered what you were asking…

In a simplified way, this plays out as follows - $100,000 profit, with an 80/20 split, and the GP putting in 10% of the equityGP = $20,000 + 10%($80,000) = $28,000 LP = 90%($80,000) = $72,000 Hypothetically - If the project required $200,000 of equity.

Now this is over simplified because It depends on how much of your net income is covered by depreciation and how much you have invested as owner equity. 

Once again though, I have a very limited understanding of tax and liability laws and my example of what we are doing with the corporation is very simplified.