You are renting.The capital gains treatment applies after you own the asset for 1 year.THough you could reduce your tax bill if you held title long enough to fit the capital gains tax treatment rules it might not be the best investment decision.

The property you purchase will be a capital asset held as an investment and the income will be rental income which is not subject to self employment tax.

Lots of people bought dot coms at the height of the bubble, then held onto them for years after than hoping they would come back up.

I usually just held on to the property as long as possible, with or without tenants, and sold to make a decent profit.

one word - TENANTS.i'd relate being a landlord to a poker player -the pros or good players play like they've already lost - so they've got nothing to lose in their mind. as a landlord, if you're going to start renting real estate - rent it as if it will be totally wrecked.ASSUME THE WORST AND PREPARE FOR IT.don't buy and assume the best.hope for it.

24% per year or from purchase to sale independent of time held?

Andrew,I held off posting a reply to see what others could suggest in terms of videos.

The loan does not specify who you have to use for the repairs (even the borrower), but they have to "be qualified to do the work and complete it in a timely and workmaship like manner"The budget would be very important as the funds for the repair are limited + small amount of contingency funds and are held in escrow until the completion of work.If it is a HML than the budget would still be important as you would have had to calculate them as accurately as possible to protect your profit.

If they're the listing agent, it is likely that they have provided valuable information to the owner, learned the layout of the owners property, informed the owner of their responsibilities under the law, listed their home in the mls for every member to see, show and possibly sell, advertised their home in print and online, fielded telephone calls related to their home, conducted showings of their home and maybe even held an open house or two.

In some states the damage deposits are required to be held in security accounts, but in others they are not.