The property can be unappealing in some way shape or form, old, derogated, who knows maybe there was a murder there several years ago and people can look up that information online?

Purchase price: $240,000 Cash invested: $39,000 Sale price: $342,000 Held property for 3 years and rented out the property for 2 years with a rental profit total of $22100 How did you finance this deal?

You could structure the deal with seller financing to bridge the gap.Possible offer structure:-Purchase Price: $170K - closer to actual value-Down Payment: Low or zero down to conserve cash-Interest Rate: 3%-5% - or better yet, 0% if the seller will agree-Monthly Payments: Interest-only or deferred until the sale-Balloon Payment: Full payoff in two years when you sellIf he wants $200K, you can still make an offer of:-$170K purchase price + $30K as a second lien due at closing-Seller carries $170K at a low interest rateHe would feel closer to his number, but you still keep within reasonable investment limits.2.

However, once converted to personal use, you can no longer claim depreciation, and the accumulated depreciation will reduce your adjusted basis, increasing your potential taxable gain upon sale.

Timelines, budgets, quality of finishes, they all need to go well for your exit and if your in bed with a GC that only cares about himself then all those things will not go right for you, but he'll still get his money.People really underestimate the following:1) The cash they need to close and carry the project2) How hard it is to have a GC stick to what they promise3) How long it may take to exit through a sale

., zoning exceptions for business in a primary residence, city lots for sale for under $15,000.  

Take your sales price, minus selling costs, minus any capex, minus purchase price and that’s your taxable gain.

Thanks, Haresh I couldn’t find the numbers you mentioned about them online.

If you’re a real poster, they need to give you some sort of commission on the sales you bring in.

As others have said a 1031 exchange, which allows for the deferral of capital gains taxes, is not applicable to properties held primarily for sale, such as a flip.If your goal is to defer taxes, you might consider holding the property as a rental for a period to qualify it as an investment property, which could then potentially be eligible for a 1031 exchange.