It's possible he carries it out, but I believe it unlikely.

Quote from @Victor Yang:In addition, is it possible for me and my wife to gift 36k worth of equity per year of the house (under the annual exclusion limit) and therefore have none of the costs go towards the lifetime gift limit?

With your first investment, you want to try and minimize risk as much as possible.

I do have a second unfinished property in GA that I can possibly leverage.

So, it's possible, and still for you!

I had to get really creative because I wanted to use as little cash out of my pocket as possible.

Phoenix contains a rare combination of elements that have created an outstanding market for distressed property investments, including the following:Cost Savings: Distressed properties are sold below their market value and enable investors to take hold of properties at a trifle compared to traditionally listed properties.Strong Market Fundamentals: Being among the fastest-growing cities in the country, Phoenix ensures a high demand in housing and rentals, hence good potential for resale or income from rentals.Value Creation Opportunities: Most distressed properties need renovations; thus, such situations present opportunities for investors to increase equity by adding value.Population and Economic Growth: Phoenix remains among those cities in the country which are attracting more and more residents and business; therefore, this presents good, long-term appreciation possibilities of property appreciation and income creation.Challenges to ConsiderWhile the rewards can be great, distressed property investment is not without its challenges.

Lets say your accountant tries to write off as much as is legally possible when it comes to lowing your taxible income so that your tax burden is less and you pay less taxes.

BiggerPockets also has a calculator to analyze deals, and I highly recommend you start this as soon as possible, even if you are not ready to buy.

Ultimately, a do a little bit of everything in the residential space depending on the deal I find, but either flip paper (wholesale), flip houses (remodels) or flip the debt (buy and holds).I am looking to connect with as many of you as I possibly can while adding just as much as value wherever I can!