If you are considered a real estate dealer, you have a trade or business - the income is earned income, you are not eligible for capital gains treatment, and the property is not eligible for a 1031 exchange.

-economic vacancy rates (real vacancy + non-collectable rent and related income) -turnover costs between tenants (normal ware and tear costs painting, carpet cleaning etc.)I would also echo time tends to be under estimated and very costly.This post is only my personal opinion.

Even for a non owner occupied?

Given equal investment horizons, there’s no (non-prohibited) investment you can make that will grow faster after taxes are paid than if similarly invested tax free.None.Why don’t you give us an idea of what you’re thinking?

Having to tear it out if non permitted, would be financial disaster.

So, I think that is another reason, in combination with what Jay said, that it is not really hurting the investor that much.Chris mentioned the frustration of having to look at these potential non-winners.

The owner has a loan of approximately $40k which is VA and non assumable w/out prior consent.

It means they toke it back as a result of non paid property taxes.

It's such a slim chance that anyone in the area even has any idea they could challenge it that it's probably non existent.

You may be able to repair some of this eventually, but again, initially plan for the worst. 4)Tile and other non porous surfaces can be cleaned and sealed.