That would qualify you to take the tax free gain of sec 121 and defer the rest of the tax and depreciation recapture in a 1031. 

At present prices in PF/G you should be able to get at LEAST a 10-15% COC return with 20% down. 

By following the process they will indefinitely defer all tax on the gain from the sale.They have put a cooperation clause in the contract to give you notice that a 1031 is happening. 

We try to source deals for our clients with cashflow and a decent amount of equity.A good wholesaler will take the time to run numbers to present to an investor.

But the procedures will tell you how they should present the extra to you for approval. 

It is also cost prohibitive to continue to maintain the property in a tax deferred vehicle.We are planning to have a single LLC own all of the properties and my question is - if we do a cash out refinancing in order to fund the taxes associated with the distribution of the investment property, will the interest be deductible?

@Dhwani Shah Hopefully this is an off market deal because if it was listed it could be sold before we could even finish this discussion online. hahahaIf negotiation can lower the asking price (a little), rents have potential to rise, and deferred maintenance is low it's a home run deal.

This is because they accepted your offer based on the terms you presented. 

Payments that you make normally fall into one of 3 buckets100% of the payment can be factored in somewhere on the returnPartial payment can be factored somewhere on the return0% of the payment can be factored in somewhere on the returnHouse-hacking also has considerable tax implications in the event that you want to sell this property.You can potentially defer a portion or all of the gain on the investment property with 1031 exclusion.You can potentially exclude a portion or all of the gain on the personal residence with section 121 exclusion

Ashley will present various strategies and provide a structure for finding a first investment, but she will also have a lecture dedicated to making offers/negotiating, and a whole lecture on partnerships, and then another one on funding.