It would/could be only 15% capital gains tax and yes you could/would deduct all selling costs including commissions and transfer taxes.

Sell and cash in on the equity? 

@Dave MaloneEverytime I read “the goldmine is in the network” to me they are selling kegs of kool aid and it’s a circle you know what with nothing for itYou could read j Scott book and get a lot of info on costs etc.

By the time it was all over, the court fees, attorney fees ate up the entire EMD and then some --- this seller never intended to sell the house. 

To update an old post, I found this information on the Fannie May website (https://selling-guide.fanniemae.com/sel/b3-3.1-09/other-sour...)

As you are partnering with your sister, have a legal document drawn up as to what happens if one of you wants to sell and the other doesn't, how expenses will be split along with money you are putting down, borrowing, profits, etc. 

UNTIL YOU SELL THE PROPERTY... then the cap goes away and you are taxed on the fair market value of the house which is usually the new sales price less maybe 15%.  

My wife and I were in analysis paralysis for sure, but then the academy dropped and we were sure we wanted to get into RE, but didn’t know how and this course was WAY cheaper than comps that ultimately just try and sell you a conference that just tries to sell you… on and on plus like you said, we got most of our money back and got to keep the material. 

He will be selling the project to buyers once completed and not interested in operating.How should I evaluate this deal from an investment point?

Down payment funds may seem tricky to those who get lured in by the countless con artists on social media selling the notion 100% financing using other people's money is easy.