Reno is a booming city with tons of tax incentives being offered to businesses and of course the tax free status offer to owner-occupants.

They also offer low documentation and no-income verification loans (based on cash flow and bank accounts, not on tax returns- perfect if you 'write down' your income or if you are self-employed.

Don’t forget, that 40-60k less that the new property is worth will also be taxed.

But, you lose the split with broker, and the income is fully taxed including self-employment tax. 

-is it a Property Tax foreclosure?

Of course, there are always exceptions (they use their tax return $$ for the move, another park offers to pay for the move, etc)

This is why the spreadsheets that analyze real estate investments include lines for vacancy, all expenses, taxes, capital expenditures, etc. so that you can be very certain that the asset can pay the loan payment each month and you don't lose sleep.

The experience was very poor and began with a lengthy application, asking for all sort of documents including tax returns, rental schedule, voided check, credit check etc, just to get a pre approval letter.

But since i am not 59.5 years yet if I withdraw looks like 20% federal withholding charge and about 10% I have to pay in taxes which means i loose around 30% of my 401k amount which I  accrued over many years

Hi @Malikah Planas I just now got off a call with my Tax Advisor CPA and he told me that 531390 is the NAICS code to use as a wholesaler.