After a while the bank decided to replace the furnace and repair the backyard deck.

Because I am a teacher and don't get paid over the summer, I would need to identify the replacement property while the relinquish property is in the process of closing, rather than waiting until after it closes, so that I can continue to provide proof of income to the loan officer to secure a mortgage on the replacement property.

Capex, because if you don't budget for a roof, but need to replace it, you just spent the next 3 yrs of free cash flow, and unfortunately a new roof does not increase the value of your property much, if at all.Tenant because in my experience, rougher neighborhoods generate more turn over and higher turnover costs.  

Purchase price: $125,000 Cash invested: $85,000 Started off as a run down outdated 1 bedroom 1 bath home in Sanger - was purchased from a wholesaler for $125k - Added 1 full bedroom to the house, replaced wall heaters and window AC with HVAC ands ducting throughout - replaced old circuit breaker panel with new updated one and rewired interior electrical, replaced all windows with dual pane windows, replaced most of the doors, laid new carpeting in the bedrooms and wood plank flooring in the living room, tile in kitchen and bath, added new baseboards and painted interior, replaced all doors in the house, granite countertops, new lower cabinets, all new appliances, added rails to the front porch, converted an older closet into a laundry room / new closet, completely remodeled bathroom to make way for a new door to the new bedroom ( not shown in pics), new wall tile in tub/shower, redid some roofing, and painted the entire exterior.

Add 1 bedroom to the house, HVAC and ducting throughout , rewired interior electrical, all new dual pane windows, replaced doors, new carpeting in the bedrooms and wood plank flooring in the living room, tile in kitchen and bath, added new baseboards and painted interior, replaced all doors in the house, granite countertops, new cabinets, all new appliances, a laundry room / new closet, remodeled bathroom, new tile in shower, redid some roofing, and painted the entire exterior.

@Gary Mazzarella for the most part land trusts, which are nothing more than a regular trust used to hold title to land, have been replaced by Limited Liability Companies.Before LLCs we’re available, limited partnerships and corporations where vehicles used but each had some negative tax consequences and ongoing costs and complications.

On the note of topics and code, depending on when the house was built if you replace the dry wall you lose grandfather status and will be required to update both the plumbing and electrical to modern standards.

On the roof you might be able to go through insurance to replace it, since we get a lot of storms(hail).

I believe you must take title in the same name used for down-leg (property being sold) as for up-leg replacement property.

Use all of the proceeds in the purchase or purchases ($500K)Most folks don't have cash resources to replace the loan so they take out a similar loan amount.