-Seller motivated by 1031 tax deference (specific timeframe constraint) and wants to buy something closer to home.3.

The scenario presented is as follows:Purchase price: 75,000Closing  costs: 2,500Pre-rent holding costs: 1,200Repairs: 17,250Total cost of project = 96,950Mortgage: 60,000 (80%)Down payment: 15,000 (20%)I thought that a total cost of project was and a total initial investment are the same thing. 

Learn to analyze deals everyday and continue saving and learning, when the right deal presents itself you’ll be in a better position.

Make sure to be present and make use of their time with plenty of questions.  

You defer the tax and depreciation recapture and get to continue investing that money for your benefit. 

In order to defer all tax you must purchase at least as much as you sell. 

That is where I met him (and he was one of the presenters). 

If your note was say for 5% then they are making 4% more on their money plus they still got to defer all tax and depreciation recapture.  

Once we get it fixed up, it'll attract higher rents, but for the present, we're going to leave it as is.  

Just like a vacant property turn over I would do you a thorough inspection and address any deferred maintenance.