@Mark Cruse thank you for this information.   

This is the point that in my mind the house has reached a balance point and is stable.

Purchase price: $179,000 Cash invested: $25,000 Sale price: $500,000 Replaced windows, remodeled kitchen and bathroom, replaced siding What made you interested in investing in this type of deal?

Since you plan to keep it the ARV doesn't matter in this calculation.

Hi @Zach Harden,I'm an investor/agent in CT and part of #1 Listing Team in CT, and we cover all CT.Let me know if you have time to connect and see how we can help you with your real estate needs.

The confusing and seemingly contradictory IRS guidance on this matter does not help. 

In that case, this would need to be an all-cash purchase and could be sold along with any liens, violations, or judgments against the property to be the responsibility of the purchaser.To your point, this is difficult but feasible.

It would be so helpful to do a 'deep dive': how much did you buy the house for, how many bedrooms, how much do they each rent for?

With fees doubling and competition heating up, you might want to rethink this investment.

This has now been signed by the seller for over a week.