In 2024, my neighbor replaced the back part of the side fence (He paid for it 100% and didn't give me proper notice per CA Good Neighbor Law).

Bought for 359k will sell for 659k in this example.Assuming 150k down payment in 2024 50k annual payments for a year for 4 years 259k ballon payment I thought 50% of each payment would be cap gains but then I read unstated interest payments and I’m lost.What portion of his annual installment payments will be interest?

Jeff's first fix-and-flip presented a learning curve, but the experience highlighted the importance of proper budgeting and project management.

Hey Nate, it makes sense to continue building out your investment portfolio in Milwaukee, but if you're looking in the Midwest, I recommend you make sure you get very familiar with the market you're interested in and build your out-of-state team first such as an agent, property manager, lender, and contractors if you're planning on house flipping.I recommend checking out Long-Distance Real Estate Investing by David Greene, where he takes you through how to properly invest out-of-state. 

We added value by re-doing the whole house, installed vinyl floorings, rebuilt 2 and a half bathrooms, re-painted the whole house, replaced all the hardware in the house, installed new lighting, ceiling fans, re-painted the kitchen, and completely remodeled the upstairs.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

I believe in general, liens which are subordinate to real property taxes, which includes mortgages, are extinguished by a tax deed sale as long as they were provided proper notice of the sale. 

If this seller just renovated, hasn't owned it long and has a mortgage, your chances of obtaining favorable to you proper SF are low anyway.

Take ownership of your mistake and learn to do the proper due diligence recommended above😊

I suspect you will need to raise a little over $2M from investors to properly execute this deal.As a side note, 12 months is never going to be realistic on a full turnaround.