Please make sure any deposit you put on real estate is held in escrow.

Your equity is just bricks and sticks and metal and glass.

If we held it beyond 3 years as a rental, this opportunity goes away. 

I went to property tours held by a large investor and saw first hand what they did.I learned so much about value, rehab, profit and neighborhoods, not to mention the connections I was able to build while attending REIA meetings and other RE Seminars.  

Property: 2868 Ralston Rd Mobile, AL 36608Purchase Price: $20,500 (personal cash)Rehab: $55,000 (10% contingency built-in) with $5,000 contingency on top of the total ARV: $100,000 (comps support higher but staying conservative)Rental: $850 (Market likely supports $900+ but staying conservative)Construction Insurance: Plans in place to take out a construction loanfor the rehab $400 for a 3-month termTenant Occupancy Insurance: Plans in place to secure a policy at $900 per yearRefinance: I have been pre-qualified by quicken loans for a 75%cash-out refinance at ~5% interestTotal kept in the deal after holding costs: $10,925 (Will adjust up or down based on rehab contingency)Monthly Cashflow after reserves held back: $109 ($127.50 in reserves each month) COC ROI after refinance: 12%

My apologies, because I know how frustrating it is when someone answers a question with a question; is there any way the prior company that held the space can be held accountable for costs of the environmental cleanup/remediation of the property?

I see all the foreclosures being bought for <$50k, but you rarely see comparable homes in the same neighborhood then coming back 6 months later for $100k+ because most of them are being held for rentals.  

However the banks held so many empty properties that the demand for rentals stayed strong in San Diego.  

So now my question is can does the number of days held start from when i bought the burnt down home and essentially if i wait till August then i can claim its as Long Term Capital Gain or does it start from when the New Construction is completed and i have to wait a full year from then to claim Long Term Capital Gain benefit ( which i wont)Your input will be much appreciated.

@Matt Miller  There are all sorts of options, like a locking desk drawer, locked owner's closet, etc.The key is to be sure that whatever you put it in isn't metal, so not in a metal filing cabinet for example.