Many “wholesalers” get all excited when getting a property under contract only to discover that a thorough inspection by a knowledgable professional results in repair costs 2 - 3 times higher than they calculated. 

The higher the rent, the better for tax purposes.

"But rates have been at 7% or higher in the past, and investors still did well!"

The good news is that real estate offers countless opportunities, even in higher-cost areas, to build wealth and achieve your goals.

BUT, you will pay 2-3% points higher in rate for this flexibility on an investment property then you would for a fixed second mortgage.

Safe rent after rehab is $900 per month, maybe higher if I get lucky and/or rehab it to a very nice condition.  

I really wanted to try finding a duplex that i could immediately rent out the lower half rather then buy a SFH and have a higher mortgage overallHow did you find this deal and how did you negotiate it?

The exemption allowed results in a “taxable value” of either 75% of the “ATI fair market value” or the final Current Fair Market Value for the tax year of sale, whichever is higher.

Before jumping into the condo, I’d take a closer look at whether the $300/month cash flow is worth it compared to other options, like a small multi-family property or a property in a higher-yield market.

@Bryan HartlenManaging low-end properties can be demanding due to higher tenant turnover, increased maintenance needs, and frequent rent collection issues.