Similarly, the sale ($575K) minus your adjusted basis determines your capital gain.You may qualify for the primary residence exclusion (up to $250K single/$500K married) if you lived there 2 of the last 5 years.

They guy who had never invested in real estate had no chance. 

Hello Camille,Wholesaling is a sales and marketing business.

Every year realtor.com releases a Top Housing Markets report based on anticipated sales growth (inventory) and price growth (appreciation).

Over time your property value will continue to go up, which you cash out on the sale.3.

Purchase price: $115,000 Cash invested: $42,000 Sale price: $168,000 Unfortunately, we bought this property as a buy and hold property, and our research led us to believe that this neighborhood was up and coming not in a bad area of Jacksonville.

Properties with fewer than five units are classified as residential, making the loans ineligible for sale on the secondary market through Fannie Mae or Freddie Mac.

This home is for sale, circa 1920s. 

However if you have enough reserves, 6mo or greater then I'd say chance it but a couple of missed payments from the tenants and you have to foot the payments out of your own pocket.I'm all for taking risks but I think you really need to evaluate the age of the major systems so you don't get hit with a bunch of cap ex all at once as well as your reserves. 

This could significantly increase the sale price and net profit after selling.Pros of Selling: Immediate large cash flow that could be reinvested elsewhere (stocks, other real estate).