We were talking to each other, walking around, nothing out of the ordinary.

Internal Revenue Code § 453 defines a dealer disposition as Any disposition of real property which is held by the taxpayer for sale to customers in the ordinary course of the taxpayer’s trade or business.

There is no "ordinary" situation.Couple important questions:Why do you want to buy this particular home?

BUT, when you sell the property, all the gain including the refi is taxable-likely short term gain and ordinary income.

The lease should be a perfectly ordinary lease.

What I took out of this thread of good info...If they cause damages or require extra-ordinary cleaning, charge them for it.

Moreover, once you finally do close on these wholesale deals, the tax man is going to have his hand out since this is ordinary income (the normal assumptions apply).So, $100 per hour may not even be close when you include the real world operating expenses.

If the roof don't leak, if the window is not drafty, if nothing is out of the ordinary then your culprit is humidity.

Payments on an ordinary $37K loan would be only about $250, though, and it seem like your payments are much higher.I assume the $15K rehab costs (vs. that $7K repairs needed) is to make it nice enough to sell.

And Hal, good point, 3 cheers to the ordinary citizens that brought that plane down... to the off duty law enforcement officers that return fire and take out "shooters" in malls..to all of the people that protect their neighbors rather than sit idly by during crimes.