You owe two taxes:A. capital gain tax on $150k ($500k sale - $350k purchase)  PLUSB. depreciation recapture on $100k of depreciation taken.Now, let's assume that you messed up somewhere along the way, and you only took $70k worth of depreciation instead of $100k.

Purchase price: $655,000 Cash invested: $40,000 Sale price: $770,000 Purchase and hold.

Timelines, budgets, quality of finishes, they all need to go well for your exit and if your in bed with a GC that only cares about himself then all those things will not go right for you, but he'll still get his money.People really underestimate the following:1) The cash they need to close and carry the project2) How hard it is to have a GC stick to what they promise3) How long it may take to exit through a sale

Purchase price: $225,000 Cash invested: $40,000 Sale price: $375,000 Bought a large 4 bedroom pool home and flipped

Most investors who take this route are not short-term investors and do not enter the investment with a timeline for sale. 

Very similar to properties in Oregon we've sold and for sale.

A big part of it is the lack of inventory—there just aren’t enough homes for sale, and Long Island isn’t exactly expanding in size, so demand keeps pushing prices up.

Is it mainly a sales pitch or is there good knowledge that you cannot find elsewhere?

You could structure the deal with seller financing to bridge the gap.Possible offer structure:-Purchase Price: $170K - closer to actual value-Down Payment: Low or zero down to conserve cash-Interest Rate: 3%-5% - or better yet, 0% if the seller will agree-Monthly Payments: Interest-only or deferred until the sale-Balloon Payment: Full payoff in two years when you sellIf he wants $200K, you can still make an offer of:-$170K purchase price + $30K as a second lien due at closing-Seller carries $170K at a low interest rateHe would feel closer to his number, but you still keep within reasonable investment limits.2.

., zoning exceptions for business in a primary residence, city lots for sale for under $15,000.