But like you all I have seen it done with other lenders.On the sale lease back Chris describes thats how i do the vast majority of my deals.

But to be successful and profitable, takes some distinct characteristics:1.

There is realized gains & profits, and UN-realized gains and profits.

While these deals were successful, I realized that the cost of using hard money significantly ate into my profits.

Is that process too complicated, yes, but there is nothing in this decision that will prevent a tax sale purchaser in MD from reselling at a profit after obtaining the property by foreclosing the right of redemption.

Even if you got the 130k valuation, between the HM loan and the refinance the lender just took the majority of the equity in form of lender fees, appraisal costs, and interest.

Quote from @Bob Dole: All,Apologies for the newb question, but I just heard about cost segregation and have been reading up about it online.My understanding is this (and please correct me where I'm wrong):Pros: -accelerate depreciation, front load (vs. just a straight line over 39 years) -save money on taxes because of the depreciationCons: -if I sell the property, the recapture will be larger -not recommended if you flip propertiesSo hypothetical situation:-Majority of our income is W2 based, let's say it's $500k-Net income from commercial rental is $100k-Income from dividends and interests is $100k-Both of us are full time W2, so non-prof real estate (but this can change  -- please see below)So we're hypothetically grossing $700k a year. 

You definitely can't just buy a building low down, do no work to it and keep old rents and expect to profit. 

If you are still a majority or controlling partner you will get no pushback. 

Or any amount of cash you take out from the exchange are considered to be profit.