And when a rising tide is lifting all boats, groups that amplified their results by using risky high leverage could score some massive returns until the music stopped, then will subsequently struggle to keep the rest of their portfolio out of foreclosure.

This allows you to postpone tax liability until you sell the new property without a subsequent exchange.2.

Let’s break it down with your example and explore the financing options.Max Leverage (Using a Lender for 90% Purchase and 100% Rehab):Purchase Loan: 90% of $80,000 = $72,000Rehab Loan: 100% of $25,000 = $25,000Total Loan Amount: $97,000Your Cash Investment:Down Payment: 10% of $80,000 = $8,000Closing Costs and Fees: Estimate around 3-5% of the purchase price = $2,400 - $4,000Holding Costs: Property taxes, insurance, utilities, and interest during rehab (estimate $1,000 - $3,000)Contingency Fund: 10-15% of rehab costs = $2,500 - $3,750Total Cash Needed: $8,000 (down payment) + $2,400 - $4,000 (closing costs) + $1,000 - $3,000 (holding costs) + $2,500 - $3,750 (contingency) = $13,900 - $18,750Moderate Leverage (Using a Lender for 90% Purchase and 0% Rehab):Purchase Loan: 90% of $80,000 = $72,000Your Cash Investment:Down Payment: 10% of $80,000 = $8,000Rehab Costs: $25,000Closing Costs and Fees: Estimate around 3-5% of the purchase price = $2,400 - $4,000Holding Costs: Property taxes, insurance, utilities, and interest during rehab (estimate $1,000 - $3,000)Contingency Fund: 10-15% of rehab costs = $2,500 - $3,750Higher Equity (Using a Lender for Less than 90% Purchase):If you decide to put more equity into the deal by using less leverage, you will need more cash upfront, but your loan amount and, subsequently, your interest payments will be lower.

It was fairly easy to setup and to add properties using the first guide as a template for subsequent guides.  

The user in question was subsequently banned from the forums for a second time, they reached out to me directly to dispute the ban but as of now the ban is still in effect for breaking the rules of the forums. 

Subsequent to that, I do see more letters going out based on our continued review.

This allows you to postpone tax liability until you sell the new property without a subsequent exchange.2.  

We missed that the property had been in a prior tax sale and subsequently the redemption period ended, and even though we tried to fix it, it was too late and we lost the asset.

@Joshua Thompson already linked the long post that I wrote to answer your question:https://www.biggerpockets.com/forums/51/topics/1215989-expla...Based on your subsequent comments, you missed the point of my post: it DOES NOT matter whether your accountant holds a CPA or an EA designation (or neither of those two).

I work with one builder....every deal I close with them in a calendar year, the comission on each subsequent transaction goes up.