@David Fritch We are still mulling over the details, I think we will reach an agreement, he wants to do it a slightly different way basically we agree on payment amounts for two years then I owe him the final amount, he's actually structuring the deal to be pretty beneficial for both of us.

I've never dealt with properties on reservations, but from what I heard, you can't buy the land itself, only the structure on the land.

If a wholesaler knows your situation (tradition financing) they will structure their contract so that it works for everyone. 

I'm getting things situated as far as the legal structure in place.

I read that the Gates decision says that if I tear down the old house to build the first two then I lose the capital gains exclusion.My question is: Is there a way to structure an arms-length partnership to buy the house and two lots - allowing the exclusion - but then also allowing me to gain some of the upside of the new home sales?

Broker:  Joe, This property is structurally superior to the comparables and has energy efficiencies that dramatically reduce expenses. 

He worked with a property were they made them remove the structure and start over with the addition.

There's a crack in the foundation that has a small leak that doesn't appear structural and there are a few broken windows and no appliances as well.My agent has made the issues with the house obvious as a part of our offer paperwork but with a short sale I'm sure the bank doesn't consider all the problems with the house like a regular homeowner sale would.

This is something to always consider if you are doing electrical or structural repairs yourself.

He also gave me great advice on a way to structure the multi-family buy and hold, and I got a local bank here to agree to it!