While I am capable of holding onto a property like this, I fear for the newbies who have very real risks of not being able to hold onto the property long enough to get out from underwater.Because the buyer of this property is likely to be inexperienced and not know or think through all of the items discussed here, this strategy may put you in a ridiculous position of power for at least the next decade over the buyer. 

It is partly your job to "sell" him on it, and partly an education and relationship-building game from your end.Also, take a look at the buildings history, when it has last sold for, if it has bounced around on the market or not etc. 

Investment Info:Single-family residence buy & hold investment in Philadelphia.

Any gain on property you hold for less then 12 months will be considered income. 

Are you trying to get something that will be a long term hold?

Buy and hold, Fix and flip?

Upon the sale of the condominium, the capital gains on Person C's sale would be calculated as follows:A. 33.33% of the sale price minus the original purchase price to account for the interest acquired via quit claim deed on July 7 2015.B. 16.66% of the sale price minus the stepped up fair market value on 11/17/2020 as capital gains for the 16.66% remainder interest acquired on 11/17/2020 from Person A.C. 50% of the sale price minus the stepped up fair market value on 01/17/2023 as capital gains for the 50% remainder interest acquired on 01/17/2023 from Person B.Total Capital gains would be the sum of items 3A, 3B and 3C above minus any allowed deductions, such as the home sale costs (closing, repairs and so on).As an individual owned rental property, upon sale the only way to avoid the capital gains would be to do a 1031 exchange and then hold the new property that is purchased for approximately 3 years before selling it. 

Newbie seeking information on lead sources, title companies, private money resources. Building relationships with buyers and having a database of active market that specifically has cashflow. I eventually will invest ...

If you integrate directly with Airbnb and don’t use a PMS you’re behind the game.

Investment Info:Townhouse buy & hold investment in Philadelphia.