Unless you can get the price significantly reduced, walk away Tim!

@Bao Vu The purchase price and related expenses from 2023 should be included in the cost basis for the flip sold in 2024, reducing your taxable gain.

Using your $100K example, the 6% seller assist is far more valuable to this buyer than merely reducing the purchase price by $6K because the 6% seller assist is a $6,000 reduction in funds required to close whereas reducing the purchase price by $6K equates to less than a $200 savings (2.5% down payment + some incidentals).

I start with market rent or a little less to reduce vacancy.

.- Getting under contract and then reducing the price because of findings is common, but major reductions are likely to tick off the seller unless you have strong justification.

This year I sold a rental property with a capital gains of 60kI’m looking to reinvest in something that will reduce my tax liability.

We also were able to get the property taxes reduced by filing a complaint with the county.

-Should I reduce my price offering? 

@Saika Maeda Permitting the ADU allows you to claim depreciation, operating expenses, and other tax deductions, potentially reducing your taxable rental income.

This reduces exit options and affects the value. 10) Small number of small units is the most expensive residential development there is.