To maximize its appeal, highlight rental performance, market it on investor-focused platforms, and consider selling before the academic year to attract buyers ready to capitalize on rental income.Good luck!

Quote from @Sam Evrard: How do you go about finding areas to invest in with limited capital? 

@Emily Gowen so as you pointed out you would not have to do a 1031 exchange on your current home to avoid the capital gains tax and coupled with what Dave Foster pointed out I think, speaking from experience you would have a high likelihood of success. 

I wanted something I could fix and flip for the quick capital as well as the experience of managing a project, finding contractors, etc How did you find this deal and how did you negotiate it?

I'm also concerned older homes have already seen their biggest jump in capital appreciation and don't have as much potential for price growth compared to newer homes.What are your thoughts on older homes?

I recommend people only sell if (a) you can invest the capital in something that performs better, or (b) it aligns with your goals.

Do you have cash reserves for capital expenses and improvements? 

This is most of the depreciation you are taking year one.You can calculate your depreciation recapture by taking the sale price of the asset and subtracting the adjusted cost basis.The adjusted cost basis is what you paid for the asset plus any improvements you made along the way minus the depreciation you took along the way.The profit above this original cost is taxed as a capital gain, but the part linked to depreciation is taxed at a maximum rate of 25% under the unrecaptured gains of section 1250.To recap the tax rates are:- Sec. 1250 real property: 25%- Sec. 1245 property and 15 year 1250 property: Ordinary Tax RatesThere are ways to minimize depreciation recapture especially if you know how to work smart with your CPA.1) Asset Valuation at Time of Sale - Sellers can minimize recapture by reallocating the price of the assets on sale.

I'm hesitant to sit on investor capital with no where to deploy it, so we are just going to wait out the market and crank up the capital raise process when the timing is right. 

The lender does charge the flipper 4 points upfront, and the note represents 55% of the property’s ARV, so I’m not too worried about needing to foreclose if it comes to that.The lender uses his own capital for initial funding and then sells off the notes after that.