And the seller would have to report any capital gain on their taxes for that year But since he has renovated the place from top to bottom he would fall into the "significant renovation" rule and if a traditional buyer bought the house for 200,000 then the buyer would also have to pay 30,000 in HST?

I am a mature and motivated 19 year old student who is on a mission to help my father gain FI after he has worked hard for 42 years.

I also hope to gain valuable insight to be successful and avoid pitfalls.

I began to look into real estate investing approx. one week ago and have been trying to gain as much knowledge as I can since through BP, books, podcasts, and blogs.

And the reason is if you contribute funds into tax-deferred account you will not be able to use those funds until you retire.It is possible to use a self-directed IRA to buy investment property, however you personally can not benefit from this investment until retirement and you would not be able to use FHA loan.

The signed lease from the landlord trumps the tenant unless the tenants lease is to the new landlords advantage.The smart decision is to believe the lease that benefits the landlord.

You might be able to explain the benefits of the regular income/payments to them, vs one lump sum?

Ive done quite a few deals, gained valuable knowledge in real estate because of BP and will always be grateful to have such a wonderful platform and good contributors.

Now I am really hesitant to close this deal...Deal summaryLocation: Norcross, GAPurchase Price: $218kUsing conventional loan - 4.375%, 20% downpaymentmarket rent $1600-1650brand new (less than 4 years old) townhome, end unit, in a very favorable locationThis community/area has gone up $60k in the last 3 years and I thought there was some room for more growth given the market condition + desirable location. 15 year old houses are trading around the same price in the area, which gave me a little more confidence that this property could gain value in the next few years.

It still projects to cash flow anywhere from 8-11% over a 5 yr hold, with a total return of over 100% to the investors including capital gains at sale.