If you purchased a property, significantly rehabbed the property and immediately sold it thereafter with the intent of flipping it, it will be subject to self-employment taxes.Regarding the taxes you will be subject toFederal TaxesState taxesDepending if it was a flip or not, also self-employment taxes.Speak with your accountant on the actual taxes that will be due as he/she will know what your marginal tax rates are.You can also factor in improvements / selling costs to decrease your gain / taxes.

How to Win Friends and Influence People - Dale CarnegieIf you read and apply the lessons of this book your networking & communication skills in improve significantly.Example: I met one of my best clients years ago and we were recently talking about the day we met.

We immediately did a cosmetic rehab on the property and over the years have made cosmetic improvements.

This is where you can begin to see where there are operational inefficiencies, cost overruns, or areas where income can be improved.

There were a lot of operational improvements that we were able to make right away.

We can fit it in the budget, the numbers still work well, but I'm don't know how impactful it'd be to potential renters and dont want to over improve or waste $12k! 

There were a lot of operational improvements that we were able to make right away.

That said, if your return expectations are out of sync with the current market you wouldn't expect many deals to be accepted.If you don't think your offer price isn't going to work, look for other ways to improve the deal (alternate financing, new income streams, etc) to see if you can bridge the gap between his asking price and your needed returns. 

Bank some money and do what you have to do to improve your credit if needed to qualify for conventional loans.

If you have need to improve the interior, you might prefer the BPO.