Purchase price: $184,000 Cash invested: $92,000 This is an international investment in Split, Croatia NOT Santa Barbara, California.

It has two units, but the house is only a legal one family, looking to possibly purchase it and live in one of the units and rent out the other, one as a Airbnb or just as a regular rental would need to get some kind of financing to make this purchase by being only a legal one family a conventional mortgage I think would be out of the question.

@David Avetisyan If you sell your home for $510K and provide a $10K seller credit, your taxable gain is based on the net sale price of $500K ($510K - $10K credit), as seller credits reduce the gross selling price for tax purposes.Tax Impact in CaliforniaCapital Gains Calculation: Your gain is the net sale price minus your adjusted cost basis (purchase price + closing costs + capital improvements).Primary Residence Exclusion: If you’ve lived in and owned the home for at least 2 of the last 5 years, you may exclude up to $250K (single) or $500K (married) under IRC Section 121.California Tax: Capital gains are taxed as ordinary income at rates up to 13.3%.The $10K seller credit lowers your taxable gain.

Your lease purchase arrangement would be good as long as the senior or their family have enough money for assisted living care until you execute the purchase. 

@Kasi V. how old are the homes that you are purchasing?

We are Canadians looking to purchase a few rental properties in Ohio.

Congrats on the purchase. Red

If purchasing new real estate as part of your reinvestment, a cost segregation study can maximize depreciation deductions, offsetting future taxable income.For effective planning, assess how the sale price is allocated between real estate, tangible assets, and goodwill, as this determines the tax treatment.

Thought I would pass it along.The Myth of Cash Flow Not sure what Andrew is smoking, but I can give you a real world example in NJ (NYC suburb - I don't know too much about MO, but I can use NJ since we just purchased another three family.Price 700,000Taxes - $11k (rounded)Insurance - $1700.00 (rounded)Water - $100.00 (rounded)Common Electric - $50.00 (rounded)We can use his 7% with 20% down.Payments - $4,930.68Apt 1 - 2 bedroom - $2,000.00Apt 2 - 2 bedroom - $2,050.00Apt 3 - 1 bedroom - $1,800.00Total income -       $5,850.00Total expenses -     -$4,930.68==========================NET                         $1,019.32 x 12 = $12,231.84The cashflow "myth" is bullsh!

I didn’t want to be waiting days for them to get back to me about edits to the purchase agreement.