Originally posted by @Lisa Ryan:Philly also has an additional 2% transfer tax when you buy and when you sell real estate.The transfer tax in the City of Philadelphia is 4% total; although it is customary for that transfer tax to be split equally between buyer and seller in a sales transaction, you will find that the buyer will have to pay the full transfer tax on any HUD house for example (federal gov't is exempt from having to pay any transfer taxes so when the federal gov't is the seller the buyer pays it in full). 

If you are offered a passive investment opportunity, however, you should be aware that the person seeking your funds must follow securities laws and should have proper documentation explaining the securities exemption they are following. they don't, think twice about investing with them.

RE is not exempt from basic investing risks.

If that property was at one time your primary residence and you can still document that you have lived in it for 2 out of the 5 years prior to sale then you qualify for the 121 exemption as well.Jason, this is a little known application of the code. 

On a personal residence you don't get depreciation, but you do get the section 121 exemption so you can get $250K ($500K if married filing jointly) exempted from capital gains when you sell the house down the road as long as you lived in the house for 2 of the past 5 years. 

But to engage in license related activities you need a license.An exemption would be if you were an employee of a company retained to run an apartment building and the employees were under direct control and supervision of a broker.

It sounds like you will not get a homeowner exemption from sale of the condo, so why pay taxes now? 

Just to be safe, however, I have this text on the bottom of each page of my lease: "THIS TRANSACTION FALLS UNDER THE 2014 DODD FRANK LOAN RULES EXCLUSION 12CFR226.2 AND IS EXEMPT FROM PENALTIES" I also just had a colleague have a tenant/buyer actually exercise the option to purchase and used a FHA loan.

And is your comment regarding sourcing the funds if Stefan uses the HELOC and the delayed financing exemption or if he buys and rehabs the property for cash and later cash out refinances a property where the title shows there is no debt associated with the property?

. $200k exemption off the top then $2.9 per $1k of assessed value.