Because of this, he could buy properties and demonstrate the intent to hold for investment purposes and not "held for sale in the ordinary course of the taxpayer's business."

You do have a goal, to demonstrate to your kids that it can be done successfully, but you can simply hook them up with some local investors to show that.So you are saying both offers have been accepted?  

You've clearly demonstrated you're off to a good start.Boise is not my market, however if you start looking into multi-family you may find a higher ROI.Good Luck!

I believe this will appeal to people looking for a quiet weekend getaway or week-long vacation, as well as the growing number of people interested in tiny houses and homesteading as it could be used as demonstration sites to be rented out per visit.Ideally I would like to find private investors who can provide the capital to build the first cabins I design, leaving us the option to re-finance and purchase ourselves within 18-24 months with a 20% return.

You will pay ordinary income determined by the calculations inherent in each sale.While there is no statutory holding period, intent is the standard and intent is in part demonstrated by your actions.

But must be verified by 60 day history, and must be a gift with no requirement to pay back.Reserve Requirements 3-4 Unit owner occupied properties must have 3 months PITIThree (3)- and Four (4)-Unit Property The maximum mortgage amount for the three (3) - and four (4)-unit properties is limited, so that the ratio of the monthly mortgage payment, divided by the monthly net rental income does not exceed 100%, regardless of the occupancy status.Livable Conditions The property must demonstrate the following characteristics: A continuing and sufficient supply of safe and potable water under adequate pressure and of appropriate quality for household uses.

3) The Team - Clearly an experienced sponsor that has a demonstrable track record of success is important in whatever REI niche you are looking at be in large MF apts, mobile home parks, storage facilities, etc. 

I'd do a short sale, I'd do a bankruptcy and take a borrower who had other serious credit issues, but walking away when there are other options just smacks me with gross irresponsibility, why would I contract with someone who has demonstrated that they don't care about contractual obligations?

You would want to make sure that both parties can demonstrate that both investments were not contingent on each other going into such transactions.

There is no statutory holding period only your demonstrated intent.