Cash purchase and rehab then refinanced How did you add value to the deal?

And, may be interested in buying from someone with a QC deed after the redemption, depending of course on the price and discount from so called appraised value.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

If the borrower provides a Form 1099-INT, you will use the amounts reported there.Q2: How to report profit and expenses from the sale of a flip?

If you're co-mingling your finances, you will have negated any liability protection a proper corporate entity structure could provide.

Through various iterations over time, IRC § 1014 now provides basis adjustment at death (sometimes also known as a step-up in basis) and can be very effective at reducing capital gain taxes after the death of the property owner.

I'm not sure the house would make a good rental property anyways as rent estimate is below 1% of value.

Some investors thrive in this type of market knowing they will have strong equity growth as regulation tends to lead to fewer players, fewer available rentals and therefore higher prices (rents and property value).

However, some investor's strategy is buy at a higher price for properties that have a high certainty of being redeemed for higher profits (eg properties that have a large mortgage that must have made clerical error...

While many investors want to purchase properties that offer BOTH cash flow and appreciation potential, those properties are priced so as to provide a total return less than either  cash flow or appreciation types of properties.