I get the gist of this but not completely sure how it works out also would it be smart to use a private money lender for gap funding in order to come with the capital needed to get approved for the fix and flip funding?

@Bacongo Sandou Cisse, you can invest and make money in any state.

I have been investing in SFH (single family houses) and using the STR (short term rental or vacation rental) strategy for the past 6ish years or so.

Section 721 of the Internal Revenue code allows an investor to exchange property held for investment or business purposes for shares in a Real Estate Investment Trust (REIT) or an Operating Partnership without triggering a taxable event.Many investors are aware of a 1031 Exchange where an investor must find a replacement property to defer capital gains taxes on the property that was sold.

What has been your favorite state to invest in?

I know there is no easy money here and that it will require work to find and manage those properties.

Just put back money for repair costs and deal with issues as they come along.

They never did find an investment property :( 

Obviously with this summer’s market it wasn’t the best decision for making a lot of money but I’ll still make some, learn a ton, help out a neighbor, and got my feet wet!

Investment Info:Small multi-family (2-4 units) buy & hold investment.