Just taxes will be 20k.I would run numbers like this:Property 1.5 million (minimum)Construction (Cheap end) 2.14 mHolding Costs (at least 150k)In my book, even according to your calculation, that means you put in at least (those numbers are on the low end): 3.8m! 

I am currently helping a VA buyer purchase a home with an assumable VA loan in Skye Canyon.

I am a newbie investor, originally from southwestern, PA and now currently located in Washington, DC.

Don't pay the current owner (higher purchase price) for the work he/she didn't do.

Margins seem low and the risk seems high.

I appreciate the reminder as well that if the gain is fairly low then it may make more sense to just pay the capital gains taxes now versus 1031 exchange. 

While I love the idea of eventually owning a paid-off primary residence, I’m debating whether it’s smarter to sell our current house and use the equity as a down payment on the new home or to keep it as a rental.

I have a long rennovation project I bought in the summer that I am currently working on and am looking to get a few turnkeys on top of that.

@Jason Khoury I purchased my current residence, a duplex, from a local non-profit about 5 years ago.

You can purchase this with a low-money-down FHA loan.