Disclose to the end buyer and the agent so that it is transparent that you are buying and reselling to them4. the end buyer should either be buying cash or their closing company know about the option so that there is no issue with underwriting with the buy n resell5. make sure there is no stipulation with the short sale lender that does not allow you to flip, Some have restrictions on the flip and or for % of profit.6.

This doesn't preclude the fact that just because it's generating income doesn't guarantee you'll actually make a profit, of course.I'm also an investor and landlord.

Besides, paying taxes means you made profit.

@Candice Banks When you say "up and coming areas of DC" Are you talking about an area that's currently a Class C+ area transitioning into a Class B area, or are you willing to go to a Class C, or C- area where you can get a 2br for the $300K range but the up and coming aspect may take a little longer than it would in an area transitioning from a Class C+ to a Class B area.  

I think the price they paid is not really material here because at the end of the day, they own the asset now and will be looking to maximize profit and limit holding time.  

I live at parents because I just sold home in December and made about 30k profit.

I live at parents because I just sold home in December and made about 30k profit.

I live at parents because I just sold home in December and made about 30k profit.

Its a little more risky becasue its a higher % rate but as long as the project is profitable then you dont have much to risk.

NACA is a non-profit which originates $0 down mortgages that can include rehab costs on 1-4 family properties.