Quote from @Jon Taylor: @Pete Harper - Section 721 of the Internal Revenue Code allows an investor to exchange property held for investment or business purposes for shares in a Real Estate Investment Trust (REIT) without triggering a taxable event.

I checked out ab968, looks like pre / foreclosures might be a good way to go if I can find them. thanks everyone for the responses, really great info. im actually starting to see more deals on properties in need of renovation so I’m hopeful I’ll be able to find some good flips when I’m ready to pull the trigger  

This allows you to invest in real estate without triggering the 10% early withdrawal penalty or income taxes, and the gains can grow tax-deferred (or tax-free in a Roth IRA).

Because again, we both know that it's nonsense to think it'd be worth that much money.Wow, this really triggers you!

The main reason I'm asking this, is to understand how much cash I need to save up in reserves before pulling the trigger on a deal like this?

Your "buy in" funds could potentially be used for improvements to the other properties you mentioned, without triggering a taxable event.

So, I'm challenged right now finding a property that will cash flow well enough for me to pull the trigger.

In April 2024, I finally saved enough money and pulled the trigger.

., whatever) it pops up another offer right on your face (meaning, they keep trying you to whatever cross selling, it is really a simple sales tactic, a psychological trigger to urge you to a decision to buy something). 3) Close the damned pop up, scroll down to the bottom of the page, and check anything on the footer that says "Privacy Notice - Terms of Use - Disclaimer" (It will be active and linked to another page, if it is underscored on hover of your mouse) - I went for the sweet "Terms of Use" - this is either a bought or internet stolen general legal terms twisted a little to fit their business verbiage façade (but you will see many errors of any kind), and here is the thing: legitimate businesses are really verifiable, and provide legitimate links!

Alternatively, consider a cash-out refinance to access equity without triggering capital gains or explore a 1031 exchange to defer taxes by purchasing another investment property.This post does not create a CPA-Client relationship.