But, based on my understanding from the accountant, the fundamental issue is that the IRS considers it as a 1231 sale because it is "rental real estate", and as such, it is considered "ordinary income" (with some consideration for depreciation) - this is irrespective of holding period.It seems a bit strange/wonky to me, but I am no expert on taxes and the IRS code.

The program is fundamentally based on making money out of subject to deals and wrap arounds that are about to become illegal in Texas. 

I think the fundamentals remain the same, have reserves, know your market (laws, seasonality), costs to operate (vary greatly between long and short term) and have a multiple back up plans you can pivot to if needed.

The pricing in the book is outdated now, of course, but the fundamentals are still there.

That being said, it doesn't do you any good if you don't try and apply what you've learned so far by taking daily, focused action.Study the basic to learn the fundamentals.

@Charlie GreenwoodCongrats on breaking the ice and welcome to BP.Ogden may not have the cash flow that the mid-west markets do, but it has better fundamentals.  

@David Burton I'm not sure what is meant in your comment about an "optional contract", but your lawyer should understand the use of a straight purchase option contract.Perhaps his objection to the use of a modified P&S contract is that it is fundamentally a bilateral agreement (i.e., both parties are required to perform).A straight purchase option contract, however, is specifically designed to be a unilateral agreement (i.e., only one party -- in this case the seller -- is required to perform). 

I work in digital marketing so Im always describing things as simply and fundamentally as possible.

This is the fundamental problem I have with Wall Street who takes too much fees off the hard-working efforts of the middle class.

In addition to cash flow however, you should be looking at markets with strong economic/demographic fundamentals with modern/diverse economies that will offer good appreciation over the long haul.