While I don't see it on the IRS tax information, if I remember from the conversation with him, I think you have to buy properties that need significant improvement. 

This is when you buy a primary residence (1 to 4 units, the more the better) which you can usually get for a very low down payment and get the best interest rates on and then rent out other units and/or bedrooms within your unit to pay for the mortgage and other expenses.

Lived in the upstairs unit for 3 years until I got married and bought a house What made you interested in investing in this type of deal?

Hey @Karen SeguinI would double down on what Even Polaski said.

Be sure to check out the free tools BP provides to help analyze deals you may have and also market insights.

I agree - it's a smart way to get into real estate—especially if you want to save on living costs and start building wealth.

I think going in to the deal guaranteeing 80% is a bit of a bold step, but it really depends on the address and the neighborhood characteristics. 

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $720,000

Cash invested: $463,183

Sale price: $751,100

@Stuart Udis is on point as always.

I currently have two deals I am a looking to invest in and I think it is a great time to enter the market on the investment side.The first deal a 30 acre parcel with two buildable parcels on it.