Holding onto it for more than a year turns it into long-term capital gains - which is taxed at 15%.I don't believe this qualifies for a 1031 Exchange either, but those rules are vast and confusing so I'll let an expert chime in on that.

I am far from an expert but the basic concept is you find a potential rental at a great price that needs to be rehabbed.

I need some expert advise.  

I am no expert.  

Please keep in mind that I am no expert and still very much new to real estate investing but I feel like the appreciation you've seen on your properties and the rent growth need to be factored in to the equation.

I grew up with Heinlein's quote, "always ask the experts, they will tell you what cannot be done and why- then go do it"  Anyway, we are doing a rehab and I hired a guy on the spot who I met serendipitously- I was going to do a painting job that night, stopped off at the lawyers, and there was a painter there.Anyway, wound up hiring him to redo the bathroom.  

I'm not a tax expert or accountant, but I believe all expenses while the property is vacant/not rented are basically considered capital improvements and added to the cost basis of the house. 

Get your name out there as the wholesale expert in your area.

Be your LOCAL EXPERT!

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