So, if she bought the bitcoin for $1 million and is now using it to close on a $10 million property, that is a $9 million gain that needs to be accounted for in her income tax.

Getting the lower unit separately metered seems like a pain.

From a tax standpoint, there are additional disclosures to make when selling a business asset for less than fair market value to a related third party. 

I do intend to stay close to home - but home provides only annual opportunities and I’m looking for year round possibilities with tax deed properties. 

Then rent the bigger home out using a property manager, allowing her to possibly cash flow and maintain that asset and let it continue to grow in value.Encourage her to consult with a CPA or tax attorney to explore the best strategy tailored to her situation.

How do you pay for the tax and insurance?

However, there is no specific holding period contained in the tax code or regulations and there is no "safe harbor." 

In this market, I would not finance a first time flipper at 75% profit split because the profits and success rate is lower than the last dozen years.  

No state taxes, high appreciation, Economic and Job growth, Population growth, etc. 

They get a higher return since they are covering housing cost, have the $250k per spouse primary residence deduction in gains, is a savings account, higher leverage position, lower interest rate possible, will pay more premium for location, etc.House might be overpriced for REITs but not for home owners.