I get a hassle free, and affordable, solution to the problem, and my vendor gets a washer/dryer that he can fix and resell.

These things would help me determine how to best structure the deal… Rather than trying to short the 2nd, see if you can buy the note at a discount… Seeing that the 1st is behind a bit, they may take $45k fairly easy… If you have the cash to buy the note, it is worth asking…Also, I would counter back to the seller with $20k say payable $5k now, and $15k when you repair and resell the house… Assuming you are reselling for cash…I always look at “rate of return” or “cash on cash return”… So getting the seller to wait for $15k will greatly increase that return… As an example…Cash needed $1k mortgage, 10k repairs, 20k seller, holding costs?

There is a friend who will buy the property at a discount, and will resell property back only if they are able to take it back later on once they are more stable or else the friends will keep house and resell it for profit.These are not some investors that are not know but friends dating back many years and trust there.So there is not fraud here, correction, but thanks for input!

Self employment tax (SET, which is social security plus medicare, including the half an employer usually pays) doesn't apply.OTOH, if your intent is to resell, even if you hold it more than a year, its still just ordinary income and subject to both tax at your ordinary income rate and SET.

Just think, if you buy this property, could you resell it at a 7% cap rate?

If you think you can resell and recoup your costs (maybe even make a little with minor upgrades), it might be worth considering doing so. 

There is no deal here, if you're looking to flip or resell.

But lets say i tie it up for 105k and resell it at 150k i profit 45k and leave the end buyer "meat on the bone".

The Book on Flipping Houses: How to Buy, Rehab, and Resell Residential Properties (BiggerPockets Presents...) 3. 

Hi im new to this forum and im not sure whether if this is the right place to post this thread. I recently bought an old house which I wanted to sell after renovating the house. The main issue is with the doors and wi...