Thanks Steve: If I am understanding you , since the property is held in the IRA and the insurance will pay the IRA there is no tax that will accrue to the transaction.

Just out of curiosity, what town/lake is the beach house in?

The costs have already accrued for the demolition and permit for the new apartment is approved.

Just out of curiosity, where did you manage to find a loan with such a low interest rate?

Interest accrued is around $225.

just out of curiosity where in Florida are you?

For the sake of curiosity, are these agents mandatory in working with the bank and their property?

After the 24 months I secured financing and purchased.I retained all of the accrued appreciation during the 2 year rental period, plus all of the accrued rent credits.

Once escrow is opened, both buyer and seller have to authorize any changes in escrow instructions.Typical seller paid items:Deed preparation; existing mortgage and accrued interest; transfer taxes; commission; title insurance; repairs based on termite inspection report.Typical buyer paid items:Hazard insurance; document preparation fees; survey; mortgagee's title insurance; credit report; loan origination fee; prepaid mortgage interest; discount points; Recording fees (deed and mortgage); termite inspection.

My approach is always to present an am schedule reflecting the accrued interest to the seller during the balloon period, and the pay off number on the maturity date ( whch you should never reach on a fast flip of course).