I wrote the above for informational purposes.

My purpose for asking this question is because if the same rule does not apply, then I would rather switch my focus to Sheriff's Sales.

The safe harbor applies to amounts paid during the tax year to acquire or produce what the regs call a “unit of property” (UOP), you must meet these requirements: (1) at the beginning of the tax year, the taxpayer has written accounting procedures treating as an expense for non-tax purposes amounts paid for property costing less than a specified dollar amount (which will be 2500 for you), or with an economic useful life of 12 months or less;.(2) the taxpayer treats the amount paid for the property as an expense on its books and records in accordance with its accounting procedures. ( do this on your bookkeeping software or whatever you utilize)(3) the amount paid for the UOP doesn't exceed $2,500. as substantiated by invoice.Note: The cost for the Unit of Property includes additional costs (for example, delivery fees, installation services, or similar costs) if these additional costs are included on the same invoice with the tangible property.Eg:A purchases 100 printers at $500 each for a total cost of $500,000 as indicated by the invoice.

I’m still pretty new at real estate investing compared to most but after learning the basics and starting to roll with deals you start seeing this picture you explained above and how there are so many variables to each person investing in real estate.

I can move that money to a taxable account with a 35/65 allocation and use those funds for the down paymentShould I not be contributing the max to my Roth IRA if my purpose is to use the funds to purchase an investment property?

We love to ski in Winterpark, but the infrastructure is really lacking compared to other markets.

@Jay Hinrichs   Compared to the MANY investors that have bought multiple HUD properties as owner occupants and never lived within 100 miles of them it does not bother me. 

You need to do a full comparative market analysis and find the true value of your home.

Definitely would be interested in comparing notes and see your thoughts on everything.

Compare this with the move-in checklist.