To gain more hands on experience in real estate investing I began focusing on working with real estate investors.

The problem with marketing to attorneys is that their legal liability to their clients is to provide the best advice that will gain the client the most money. 

@Justin HerringtonWhile Thorold does not give a maximum occupancy per dwelling unit in a direct manner, it appears to define any building providing lodging to more than four (4) occupants as a boarding house:“boarding house” means a building in which lodging is provided for more than four (4) persons in return for remuneration or for the provision of services or for both and in which the lodging rooms do not have both bathrooms and kitchen facilities for the exclusive use of the individual occupant;In turn, they restrict a rooming house or lodging house (but never marry definitions to that of the boarding house) as follows:Where a dwelling unit contains rooms intended to be used in conjunction with a rooming house or lodging house, the occupants may share a single bathroom provided that: (1) not more than nine (9) persons occupy the dwelling unit; (2) for each additional nine (9) persons or part thereof, there shall be an additional toilet, handwash basin, bathtub or shower; and (3) access to the bathroom can be gained without passing through: (a) a habitable room of another dwelling unit; or (b) an open area, which is not normally heated during the period of the year which heat is required by article 2.22.3 of this by-law.So, it appears to come down to whether boarding houses are permitted where you property is located (and whether they need to be specifically licensed), unless your building would be seen as a non-conforming duplex.This is the question, I believe Thomas was asking.

Look at that $550,000 three year gain!  

We could have gone with a 203k instead of your client’s offer, but chose the cash for obvious reasons as timing is critical to my clients and they are counting on the closing this Thursday, June 18th.It’s a shame your folks do not have a contractor relationship who understands how to create a quality product, while ensuring an investor gains a healthy return on their investment.

In Real Estate as in any industry that involves sales you are going to get teasers, people making it seem impossibly good like offering an 8 unit apartment building for $39,000.00 Who would not love to buy at that price but when you call they tell you , " Oh that was a typo and the building is really 1,039,000.00.I have found wholesalers much like most regular real estate agents do not provide accurate ARV, repair figures or potential gains figures, they also will put in a disclaimer that there is not guarantee of accuracy and buyer is responsible to do their own diligence. 

Usually, the smaller Title companies will run the search for free to try and gain business.

Should I continue my due diligence, since I’m just learning and I can gain a wealth of experience in the process or do I let this one go?

My remaining issue is the tax implications of owning the property, I have the property tax covered with the calculator but I am concerned about the capitol gains tax.

It is a way to defer your capital gains tax on a home sale.