If this is the case, would the original seller financing have to mention that the buyer (me) can re-sell the property at any time? 

2 years later in Nov 2024, i am checking in to see everyone's opinion to the question on the original post. - What do you think will be theNext gentrifying neighborhoods in and around Chicago?

(Had we rebuilt the original windows we would have been fine and wouldn't have had to bring them to current code.)

The original post leaves the door open for a challenge by the IRS, so the safe harbor of holding it for investment for two full years is the safer option.  

What your deal would ultimately entail is a buyer who trusts you enough to give you $125k and trust you to pay it back while his property is encumbered by both your seller finance note and your original mortgage for $125k.

Property was originally listed for $1.2mm this past year they’ve done multiple price decreases to $699k.

The original poster was talking about a $1M investment to get there which I would say that if someone invested $1M expecting that return 999/1000 times they would lose their entire investment (and that might be generous if it's a 1 in 1000)

Great area to buy in, house was all original 1978 brick ranch.

In addtion when the net investment property is ready or on the ARV you can do the same thing pull cash out and pay off the original amount and use the rest for another down payment.

He then proceed go down $50k on their original offering to me because of the scope, amount of money, and my (apparently) my newfound lack of “experience”.