When the closing took all of 10 seconds I decided this was a pretty sweet way to proceed.Since then I do all my flips buying for cash and then selling on "low down, owner will finance" deals that allow me to (occassionally) purchase off the MLS and sell the same day for a profit.

They will say they are new properties, and they have ready tenants, so the expenses will be low.At best, they're understating the expenses and covering the shortfall out of their profit for the guaranteed period.

After 1 year, i have completed 18 real estate transactions with all of them netting over 20K and i have created multiple streams of income for my business that give me monthly profits of over 5K a month.

You should definitely read some posts by MikeOh he's the king of rental property around here and he's definitely got the recipe to make it profitable!

Our buyer will then buy it from us with cash (so yes, we will have actually owned the property for an hour or so)So, if our profit was $40K, are we liable for capital gains tax, regular erned income tax or what?

As Zig Zigalr said "You can have everything you want in life if you help enough other people get what they want"Of course I'm always seeking Investors That are interested in Profit Sharing.I also have a marketing center that finds Real Estate and Business notes.I am also looking for Investors that are interested in buying notes at discount either for resale or to hold.

You know your quote under your name says "Investing with honor, for a mutually fair profit".

Rehabs ALWAYS take longer than you expect, ALWAYS cost more, it ALWAYS takes longer to sell, and you ALWAYS sell for less than you thought.The rule of thumb for fix and flips is that if your buy and rehab costs are 70% of the ARV, you will make a 10-15% of ARV profit.

Alternatively you could fix and flip some properties then reinvest the profits in rentals, although putting a down payment on a rental will dilute the returns, so this option is only second best to buying rentals that cash flow with no money down.Hope this helps...

mouschi -In general, to figure out your cash flow (profit) on a rental, you follow the following steps:1) Calculate your income2) Calculate your expenses (not including mortgage/debt service)3) Calculate your Net Operating Income (which is Income minus Expenses)4) Calculate your Cash Flow (which is Net Operating Income minus debt service)So, if your house rents for $1000/month (your income), and you pay $500/month for things like taxes, insurance, maintenance, property management, etc (your expenses), then your Net Operating Income is $500/month ($1000 - $500 = $500).If you then pay $400 in mortgage/debt service, your Cash Flow is $100/month ($500 - $400 = $100).