The capital loss would be calculated as the difference between your original investment amount and the amount you received back (in this case, 10% of your principal).

And doing a back of envelope math of 50% down to SEV, then ~69 mills rate (18 mills added for investment property) means ~$28k in tax footprint.My current understanding is: The Taxable value of the house will be subjected to re-assessment.

I like the idea of using a HELOC for value add projects where you can refi in 12 months to pay back your HELOC.

A while back, a friend of mine stumbled onto a Virginia closing cost assistance program that wasn’t widely advertised..ended up saving $5K just by asking the right questions.

How will they get back home?

If you are successful, you should have profits to pour back into the next project.

This sounds like an issue they should be navigating to get you your time back.

However the key is making sure the numbers pencil out so that, at minimum, even in the worst case, you can pay back that heloc because interest on that is going to be very high.

I went back to Memphis last year for the first time in six years to find all is as advertised with very minor exceptions.We have picture inspections done every four months, cost $75, because I'm a trust but verify guy.Good people, good service.   

We are both committed to re-investing any cash flow back into the asset to snowball equity as quickly as possible.