I am moving out of the states and I am in a fix whether to sell or rent the property.

My main concern is regarding cost-basis and future capital gains tax when I ultimately sale the property. 

We have Investor Friendly Realtors in that area that will get commission when we buy the property and again when we sell it after the rehab if done.

Since the loan on the house will need to be payed off before construction begins, it means the new loan will be solely under my Dad's name- and since he will not reside in the property, it is now seen as an investment property.

Purchase price: $258,000 Cash invested: $50,000 Purchased this 2 bed 2 bath, 1250 sqft home with a .75 acre lot, this was a good BRRRR property, it has the ability for an ADU/Granny Flat on the right side of the property.

I would also think it should be only available nights to guests, and that is how we track our properties.

Purchase price: $258,000 Cash invested: $50,000 Purchased this 2 bed 2 bath, 1250 sqft home with a .75 acre lot, this was a good BRRRR property, it has the ability for an ADU/Granny Flat on the right side of the property.

Have you ever struggled with pricing a flipped property, and what strategies did you use to set a competitive price?

Note: I am under the impression that me material participating in this exercise will fall under the "Real Property Development or Redevelopment" activity, thereby allowing me to cost segregate the home construction cost.

IRS Publications 946 (How to Depreciate Property) and 527 (Residential Rental Property) can offer some guidance.