I target pre-existing, non-conforming lots that town assessors have deemed unbuildable either through a land use code or a very low tax assessment.  

Owning makes money from cash flow, appreciation, depreciation on taxes and write offs for your taxes. 

In order to defer all of the tax you must purchase a replacement property that is at least as much or greater than what you are selling for.

So you have LP who makes investment then when it does not go right has no clue what to do @Chris Seveney then points out not only did they get wiped out but if there is significant cost seg taken there will be some pretty hefty tax due and the LP did not know if there was a cost seg or not..

Also, the tax benefits of the buy and holds help offset the increased tax consequences of fix and flips.

Here are a few things that I like about the neighborhoods in Indy compared to other states: high rent-to-home-value ratio, consistent and gradual city development, relatively low property tax and insurance cost, affordable renovation service cost.From my experience, it's possible to find deals that meet 1% rule if you invest in *turn-key* duplex or SFH here, but they are harder to find, and could potentially slow down you from scaling up.

I think a good tax person is worth their cost.  

Taxable income is not cash flow.There are a myriad possibilities for taxes.

For instance, property tax & insurance expenses.

. $500,000 was tax free due to being married.