COMMISSIONER: Frequent and substantial sales of real property more likely indicate sales in the ordinary course of business, whereas infrequent sales for significant profits are more indicative of real property held as an investmentTips to get capital gain treatment on the sale: A) If you have an actual investment property and you are a dealer: Maintain separate bookDocument intent to hold the property as investment property in Minutes or other documentsReport expense as investment expense on tax returnAlso use separate entities.B) Insubstantial Nature of the Real Estate ActivityThe frequent buying and selling of real estate indicate the taxpayer is engaged in the trade or business of real estate sales.

I want to bite the bullet and just jack up the rent but I battle with the ethics dilemma since it’s a family of 4.

My pest control guy hands them his card for future treatments they can pay for.

There is a difference between an infestation and there being a few stragglers of an initial treatment of the roaches.

Your book recommendation will absolutely help give you a head start on being an honest and ethical landlord. 

But first learn the right way to wholesale, the ethical and legal way, without stealing money from others or making false statements or promises.

We always do everything legally, morally, and ethically.

Wholesalers are the problem because the majority do it without ethics and values, don't have cash to buy, mislead the sellers, overpromise and underdeliver on access to properties, continually go way low on repair costs and way high on ARV.

These are professionals with additional training and a stricter code of ethics.

As a newbie, I lack credibility and track record obviously; that being said, would it be best to look for partners in a similar boat (with high work ethic) or work with more experienced investors who’s looking to add someone on their own team?