The deferred maintenance arent major items but they need to be taken care of....landscaping, replace some sod, paint the exterior, minor drywall repairs, replace a shower door...overall the house is solid.

Sales tax exemption is for those purchasing items for resale, where the sale tax is taken at the point of resale(or for non-profits like churches)You do not collect sales tax when you sell the flip(or flop)

You could easily end up selling the house at a loss in 5-10 years, as Paul mentioned.

well sometimes we have short memeories or your young enough to just be getting starting in RE business.2 things happened in phX that tanked those values.. 1. politics kicking the illegals out.2. building stopped tenants leftMuch of this housing was and is hispanics they were fleeing back to mexico for political reasons and because new contruction stopped loss of job was huge.so you had 4 plex's go vacant or only have one or 2 tenants.And of course the dreaded turn over which always cost money along with under capitalized owners in many cases could not afford negative cash flow along with turn over expenses led to a melt down.things have rebounded... same thing happned in Vegas with the 4 plex's there.

"Your" assets need to be kept distant both from you(r personal possessions) and from each other to minimize losses in the event of a successful lawsuit.

According to wreg.com, the couple has filed a 1.3 million dollar lawsuit against Arnaiz and is alleging that they have suffered from emotional distress, anxiety and loss of sleep.

If not done correctly, it could be a total loss.1)  You need insurance to cover the loss of the property as soon as you buy the lien.2)  The lien could be ruled invalid in Federal or State court.3)  You must have the ability to pay the first lien in full when the note gets accelerated.4)  The property could actually be worth much less than you pay for it.5)  It could take years with little or no money coming in before you get a dime.Don't get me wrong, I am not saying this is a bad deal at any price.  

So if home depot pays X for an item, By the time it gets the shelf, they need to pay the 30 people for their work in the process.

Chris,The majority of purchase agreements/contracts and/or assignment contracts being used in wholesaling contain items that could possibly be in violation of the respective States real estate licensing laws. 

That is why we have 30 days (state depending) to return security deposit with itemized deductions.