I live about 2 hours south of you, in the even-rainier part of Grays Harbor County (Near Aberdeen, on the coast.)

Originally posted by Glenn Gray: "I've found that buying rehabs with leverage is not allowed."

So, if you made a loan, then borrower did not pay and you had to foreclosue, fix, and sell, the intent was to make a loan so no UBIT.If you make 50 loans per year and flipped 2, the "intent" and regular business practice was making loans, not flippiing, so likely UBIT would not take place.If you flipped just one property and did nothing else, the IRS could hit you with UBIT.Kaaren mentioned the recommendation to avoid this active process and stay clear of the gray area, sound advice.

I always disclose to them that I'm a realtor, but since I'm always buying as a principal I've never really run into the problem where something could be a gray area. 

where black, gray and white are the in colors but in most family-oriented neighborhoods buyers tend to like warmer tones.In my market we have a couple of flippers who do outstanding jobs and I know in advance my buyers will like their properties.

Establish relationships with like minded people brokers, lenders, other investors, it's kinda what you know but who you know will definitely help you fill in any voids or gray areas!

The distinction between a repair and a capital expense can be a gray area.

Double check your numbersRoof another layer of shingles, if possibleGutters where need Trim trees to clear the front door entrancePavers with gray or burgundy toneThe Parking structure is really killing me , fyiClean up the backyardNice coat of paint on the left side of the fenceMy personal opinion – go check out a few of the other propertiesfor sale with a 1 or 2 mile radius and put together a game plans.Feng Shui would really help this property out Check your local library for free materials on Feng Shui

Full Disclaimer My views, opinions & strategies have been largely shaped by Robert Kiyosaki, Robert Helms & Russell Gray so just sharing what I've learned from them, and/or have implemented after 1,000's of $'s & 100's of hrs of their guidance.

It really seems like a gray area (wholesaling) with regards to state law.