@Craig C. welcome and thank you for your service.

The condition is clean, but needs a new hot water heater, new A/C unit, new appliances and carpet and paint.

However, I will be moving the note from a $140K-ish house in a C+ area to a $250K-ish duplex in a B area.

@Geremy C.

Also, they decided they wanted a fence to keep their dog from running near the A/C unit in the backyard.

And, if filing as an individual, the privilege of paying SS tax on any profit on the Schedule C.

(C) Period of nonqualified useFor purposes of this paragraph—(i) In general The term “period of nonqualified use” means any period (other than the portion of any period preceding January 1, 2009) during which the property is not used as the principal residence of the taxpayer or the taxpayer’s spouse or former spouse.

@Bob C - CONGRATS!

If you are flipping as a rehabber you will pay more taxes regardless if your company is structured as an LLC S-Corp, C-Corp etc or Ptrshp because you are flipping and considered a speculator not an investor per government policy.

Having lived in Bellevue for many years, I always considered the majority of the Tacoma area to be a B to C asset class.