I buy multi family apartment buildings with the intent of getting FORCED APPRECIATION to get cashflow up and make me sell the building for a good profit a few years down the road.Just like this property - which I sold and made over $1 MILLION profit on.

I purchased a 2 bed/2 bath condo in my area with the intent to live in it for a bit before ultimately renting it out as my first investment property.

My intention was to mortgage home 1, let tenants pay mortgage and use it to finance Home 2 and so on...

And I have plenty going on...I invest in markets that are largely outside of where my clients invest...intentionally.

@Kendra EllisThere are many factors under case law to help determine what is an investment and thus capital gain, and what is property held for sale and thus ordinary income potentially subject to SE taxes.The preeminent factors are intent at the time of acquisition and intent while holding it.If you acquired these properties with the goal of renovating them and flipping them for a profit, it would be very hard to argue capital gains. 

Purchase price: $96,000 Cash invested: $54,000 Sale price: $249,400 First intentional fix&flip and it was a home run making all things possible in my mindset What made you interested in investing in this type of deal?

I heard that some sellers like to intentionally put "bad" tenants in prior to selling, and raise the rent (because those bad tenants get rejected elsewhere) to make the property look like it's performing better.

I agree, mostly.I would give all three of them notice of your intent.

Did they take title with the intent to hold for productive use? 

Anything 4 units or less is single family for all intents and purposes.