But they could just buy the house or condo next door and go to cosco and spend $10k making it nice like my wife does. 

There will likely be a partnership return required where you flipped a house with a partner and lost $120,000.If you sold the other property within the same partnership, it will also be reported on that partnership return.The net result to you is that you will receive a K-1 showing your income / loss which you then use to report on your individual return.If you made no money within the same year, you likely pay no additional taxes / get no additional refund.Best of luck.

@Brody Trott You can not got wrong with House Hacking.

Quote from @Sufyan Ahmed: I have never purchased a house before as I like living in my 2 bedroom rental apartments. 

I own 27 properties in Greater New Orleans (36 doors) and wholesale around 50 houses a year in this market. 

A year ago I recently purchased my first multi family to house hack and I rant into a issue when the seller paid for a electrical upgrade to the home.

My point being, having a reliable team here is a must.Dialing in on what class neighborhood and what kind of property you want is as key as your metrics, especially given that much of our housing stock is ~125 years old --- at least in the city.

@Jaycee Greene, I have to learn more about house hacking to take a deal like this. 

I think it's about the best time there is to outside of the past to invest and acquire properties.I just recently found an article by Julie Taylor from realtor.com that was posted December 10th that has some predictions on housing markets where "Home Sales Are Set to Soar" with Colorado Springs listed as number 1 with expected YoY sales increase of 27.1% and Denver expected to increase 13.6% YoY quoting Christine Dupont-Patz who is a real estate agent in the Denver area. 

If you take this housing away from these people where do you intend to have them live; in the streets, underneath freeway overpasses?