If you are holding less than a year you would get hit with short term gains.If you hold for a years time you would get hit with long term capital gains.If you defer the gains with a 1031 after holding a year and selling to the city then you will not pay anything if done correctly.While there is no rule on 1031's case law and 1031 companies site 1 year as being safe to do a 1031.Anything less than that and the IRS has been challenging you are holding for resale purposes and not investment purposes.Simply have the city purchase after your 1st year of ownership is up if you want to avoid the gains taxes and do a 1031.

If you're going to pay to have the work done, get estimates and choose/schedule your subcontractor(s) so that work can begin the day you close.

However, with a multi unit, if one tenant is late or you have a vacancy, it's easier to absorb because the other unit(s) typically can cover the costs for that month.

Especially if the guarantor is very strong, has CF, liquidity, NW, etc..With strong enough guarantor(s), you may be able to get a non-recourse loan for another 25-50bp.

Check out this thread on building your buyer's list:http://www.biggerpockets.com/forums/93/topics/54108-buyer-s-list-how-to-I suspect most of the "we buy houses" signs are from wholesalers rather than rehabbers, but they're still worth a call.

Same in S.

Thanks for the help, Uwe S..

Paul S. one important issue is getting to know the neighborhood.

Originally posted by Jeff S.:... it is business, right?

S8's mission is to provide safe housing.