According to the Tax Court Memo, the following factors are used to determine whether an asset is a capital investment or if it is an item purchased with the sole intent to resell: The taxpayer’s purpose in acquiring the propertyThe purpose for which the property was subsequently heldThe taxpayer’s everyday business and the relationship of the income from the property to the total incomeThe frequency, continuity, and substantiality of sales of propertyThe extent of developing and improving the property to increase the sales revenueThe extent to which the taxpayer used advertising, promotion or other activities to increase salesThe use of a business office for the sale of propertyThe character and degree of supervision or control the taxpayer exercised over any representative selling the propertyThe time and effort the taxpayer habitually devoted to the salesFor the full text of TC Memo 2010-261, click the link.

So I'll describe my removed image instead:I agree with @John D. regarding the bank slowing your roll if you can't take a 25% haircut and still do OK by posting an image from the American Sitcom "The Office" of a character named Ryan pointing at the quoted post described above in a whimsical manner oriented vertically instead of horizontally to enhance the amusing nature of the image itself. 

If the seller defaults on the loan, exercise your option and buy him or her out.Find a Co-BorrowerEven credit-poor individuals can secure bank financing by finding a co-borrower with good credit.

For example, Hood is one of the major training locations for Army Reservists who come in for their Weekend Warrior exercises and two weeks in the summer.

Eventually these exercises become not unnecessary, but not really worth the effort invested when you realize you can make $1K, $5K, $10K or $30K a month just by making offers on more expenses properties.

Then you should have all the important factors for your consideration on one piece of paper and the exercise will help you think it through.One other thing I'd recommend ... if you do choose Montana, then I would seriously consider renting in Montana and holding your SoCal property as a rental at first (for a year at least).

A good exercise may be to think about "how you can afford it".  

It is one thing that can enhance and develop a good working relationship with a contractor.  

I can help with that planning exercise.

I consistently hold more than one job and I crush it.Time management: Due to the amount of hours I work, I have to structure my life around schedules; as such, I have been able to accomplish everything I need to accomplish by exercising extreme control over my time.Personality.