Checking out the actual property is also vital.

A good RE accountant and lawyer are vital to successfully starting in REI.

So, to answer your question, if you buy a replacement property that has a purchase value equal to the property you sold, and you bring on a co-investor, yes you will recognize some or all of your tax liabilities because you have not exchanged equal or up in value.So, for example, let's say that you sold your relinquished property for $525,000 and your routine selling expenses were $25,000 so that you have a net sale price of $500,000.

You would have to acquire one or more replacement properties that have a total value of $68,500 or more (equal or up in value).

Yes Michele, I agree that communication is vital!

A rule of thumb used on large properties says the average turnover cost is equal to about four or five months of rent on the unit.

I thought about just doing one but basically they were equally contributing.

I follow the standard rule that a prospective tenant's gross income must equal 3 times the rent plus utilities.

I had my mortgage attorney make the escrow instruction one time that I use as a boiler plate.The hold back amount can be equal to, greater than or less than the rehab costs, whatever everybody agrees to.

Ideally you simply join him as a Joint Tenants (a form of title) which means the shares of the title are split equally amongst the two of you, so 50%/50%. 2.