With a purchase price of $330,000 and a sale price of $399,000, the property promised substantial returns.

The amount could end up being substantially MORE.

Unfortunately, Colorado has just passed HB 24-1098, the "just cause" eviction bill, which requires landlords to offer lease renewals to their tenants unless one of a few specific criteria are met (if the property is going to be sold, substantially repaired, or renovated, or if the landlord’s family plans to move in - but basically you can't put it up for rent to anyone else for at least 90 days).

Oh boy.. and just watched the big short yesterday... how soon we all forget@Marco Santarelli  I see this going right back to what got the industry into trouble last go around owners with little or no cash into deals.. especially lower end tough to manage properties.. just because they can get low down they Better Have substantial reserves. this model created a lot of failures from owners ...

With a purchase price of $215,000 and a sale price of $380,000, the property promised substantial returns.

With a purchase price of $370,000 and a sale price of $435,000, the property promised substantial returns.

You should know the rules inside out or be working with the professionals that know it.Incorrect moves can result in not only a taxable event to you but to your investors.Based on your most recent response, i do not think you have a good understanding of1) requirements of the QOF(You may need to substantially improve a property)2) How long you need to hold a property before it can be sold to exclude the gain3) Inside basis vs outside basisBest of luck

With 3.5% down and 4% interest on renovation costs, it made sense to do substantially larger renovations than we would have had we come 100% out of pocket.  

The three in personal name have increased substantially in equity, I was going to tap the equity and reappraise etc looking at 4-500k of additional equity, these currently have separate notes in the 1st position of 3.35 30yr fixed.

Therefore if you are contributing 40 hours a week at your W2 job you would need to be able to substantiate 41 hours a week in real estate.