Crossing of a calendar year or fiscal year just means that the income is going to hit in the next year, and that is when the tax bill will be due (although you might have to prepare and pay estimated income taxes in that case).

When desperation drives the car, you will likely hit a tree.Also, Joel made good points to the LTV funding levels, I do think there is a limited amount of guys out there who will entertain the deal if the home has true equity upside.

I own several SFHs in the lower end of the scale (20k-after-rehab-ish) and while those rent for 550$ on average, some months I may see 20% of that in net income, and most of the time like Jon side, when I get hit with something "unexpected" it may take a big chunk of the gross since while the house is cheap, maintenance costs are high in comparison.

Then you can invest it in real estate without the tax and penalty hit.

My name is Kevin and i am 29 years of age and have over 10 years of experience in the construction remodeling business. I know the ins and outs of remodeling homes but what I dont know is wholesaling and I would like ...

I'm a realtor and new to investment side, just wondering whether any realtor who is also an investor has done any wholesaling (assignment of contract) deals. I would really appreciate any help in the right direction o...

Yes you can say the property will be brand new and your costs will be less BUT over the life that you own the property you will need to do things to it.If you don't when you sell and suck out all the cash you will take the hit on the resale.

ty pat and ben i know exactly what i must do like a brick falling off and hitting me in head, lol hope all goes well for you

Can I hit you up for some sold comps at some point?

It also isn't really going to help much if the s hits the fan because I'd have to potentially sue to get them to perform.