My partner funded the initial 20 percent down and I funded the rehab.

real estate done right is a lifetime great gig.. wholesaling rarely is.. some will do it for years. 

@Jeff CampbellThe percent rules are only rules of them.  

It is supposed to be a lifetime lease done with the previous owners.

Depending on factors like how long they held the investment, the capital gains rate can be 0, 12 or 15 percent of their investment.Because they do passive investing, investors do not have to pay a self-employment tax bill.

@Jonah Walker stop trying to time the market and  stop overthinking. 10- 15% net caps are to be had, who cares about up or down a percent or two,,,,,,, Just connect with those that do deals vs analyzing,Good Luck  

You could meet the percent rule and not cash flow.  

This disqualified it for a conventional loan, bumping the interest rate up almost 3 additional percent. 

I use a property management company that is awesome their 10 percent fee is well worth it because they took care of the screening process, collecting all deposits and rent. 

Alberta, Saskatchewan and Manitoba still have the 1 percent rule in play.