Hit me up if you ever want to chat REI in maine. i called the hard money firm you recommended to me on my recent posr, (milk street capital) I may pursue them!

But when two related parties (for example, parent and child) do a real estate transaction, the IRS takes a close look at the price to make sure there is no tax evasion going on (for example, a reduced capital gain for the parent from the sale of the family home to the child).

Flipping is much riskier and you need to have a lot of capital lined up or people with money. 

I've been in account selling for some time not real estate but capital equipment, and yes it is different but building a rapport and finding connection with a seller trumps coaxing them into sign the contract as fast as possible.

I guess my next question would be great, I guess my capital is not at risk either....

Whats going to help me decide between the two is whichever is easier to get started in without a ton of financial capital.

That's one of the great benefits of MFR's and I'm glad to see other investors like yourself capitalizing on this great opportunity we have with real estate.

Then if we have enough appreciation we would sell it and possibly re-investing in another larger building using a 1031 exchange to defer capital gain taxes.

Account Closed They are also placement agents that can connect you with capital sources.

More technically what we do is this: The initial rent rate when we purchased / whatever the purchase price + and capital improvements needed (if any) to make it 'rent ready' = our "multiplier number" at time of purchase.