Have some deals but the old story no capital.

85K is not alot of money you know...If its all you got, you are better of building capital by flipping houses, when you have 500K, start buying to hold using leverage to buy as much as possible.Do this, you may be a millionaire in >2 years.

Long term capital gains (gains on investments of over one year holding period) are taxed at 15%.

I mean if they have venture capital funding then it's safe to say that they have very large plans and they have convinced at least a few people with big bucks that they can do it.

So yes he will earn a profit, but if you don't have cash then you have to increase your capital base in the property (either through another loan, or by adding equity/cash to the equation).All of that being said...

This takes very little capital as long as you search hard for the right deals (i.e. no money down, very little work to do to the home, good market for rentals).

-There currently isn't much maintenence considering the property is 9 years old (probably about the time to start having some things break though).A little more info: I bought the property in 2000 so I am now beyond the 2 out of 5 year rule to avoid capital gains (shoulda sold it last year).

I recently saw a guy in our newspaper that was doing a 2 hour sales pitch on capitalizing on estate homes.

The number one rule of investing is to not lose your capital.

If your clients have the capital and will go with it 100% then you can do it this way.