I've never heard of it taking two years to sell a house in the suburbs, that's straight idiocy.Going forward ask this guy about treatment plans, what CEs to pursue for after you graduate to help make you a better clinician, etc., but his real estate advice sounds like a wanna-be ego-driven baller who wants "sexy" properties to brag about at a dinner party with people they don't actually like instead of educating themselves about how to build a long term empire so they don't even have to bend over that perio patient in their op 8 hours a day.

The spread on rehab flip deals typically comes from the rehab work and the treatment of the house as "distressed" when doing the BPO.But at any rate, it's a good deed for the neighbor, as the short sale will ding their credit much less severely than a foreclosure.

Necessary repairs before filling the house with a renter will include a wood floor treatment (not full on refinishing with polyurethane), touch up trim paint in each room, selectively touch up wall paint in certain rooms, repair a portion of ceiling from water damage (source of damage identified and repaired by owners), as well as general cleaning of Full Bath tub and tile surround. 

If you treat them good they will return the same treatment.

They say confession is good for the soul so here goes.....my CPA suggested that I could qualify as a 'real estate professional' and take advantage of the very favorable IRS tax treatment which accrue to investors with that designation.

It may not be possible to completely subdivide the lot so just want to know about the treatment if we did have to sell it as part of a 1031 exchange.

Hi @Roman Capone, Properties acquired with the intent to rehab/fix and then sell or "flip" do not qualify for 1031 Exchange treatment since the property is technically held for sale and not held for rental, investment or business use.  

Hi Teri, Properties that are acquired with the intent to buy/rehab and then sell/flip do not qualify for 1031 Exchange treatment. 

Unfortunately he was recently diagnosed with advanced colon and liver cancer and given a very short time to live which means we will be co-inheriting the properties along with my sister-in-law.

Give them "special treatment" because they are customers as opposed to prospects.