Bought for $157,100.38 *** ***  ARV $245,000.00 5 bed 3 bath – Phoenix AZThese are the numbers from the HUD statement Bought for $157,100.38 *** * ARV $245,000.00 Existing Loan Amt Payoff $118,145.37 * Subject To $118,145.37 **** Closing Costs From HUD Title $1,045.00 Escrow $1,400.00 County Taxes $538.38 Recording Fee $120.00 Cash to seller $10,000.00 Misc other charges $525.00 Total Amount Due $ $13,628.38 *** Arrears To Bring Account Due Total Number of Missed Payments: 11 Total Payment Amount $10,095.47 Unpaid Late Charges $146.84 Additional Amounts: Foreclosure Fee/Cost $354.19 Unpaid Advance Bal $1,101.75 Total Amount Due $ $11,698.25 *** FHA Loan Mod 2nd $11,582.44 *** My Out of Pocket $36,909.07 *** Total Cost Basis of Purchase $155,054.44 ARV (After Repair Value) $245,000.00 Repairs Post Purchase $ 5,000.00 +/- Unrealized Profit $84,945.56 *** Equity (ARV minus Subject To payoff) $126,854.63 *** I strongly recommend having 3 months reserves as follows: Monthly Mortgage $917.77 (Taxes included) Electric Monthly $362.21 Water & Sewer Monthly $102.80 HOA – None $0 Reserves3 months mortgage payments @ $917.77 per month = $2,753.313 months Electric payments @ $362.21 per month = $1,086.633 months Water payments @ $102.80 per month = $ 308.40                                                            Minmum Reserves Total $4,148.34Then I turned around and sold it on a Lease Option for $265,000 getting $20,000 down on a nonrefundable Option fee, and rent of $1,900 a month. *** My Out of Pocket      $36,909.07 Option Fee To Me      $20,000.00 My Adjusted Out of Pocket        $16,909.07 ****** My Cash Flow  *  $ 982.00 monthly **So, I sold it for $20,000 more than street value, I get tax write offs, I got $20,000 back immediately as an Option fee, I cash flow at $982.00 a month and if they exercise their Option, I’ll get $146,854.63 (minus the $20,000 Option fee) equals $126,854.63 cash along with any pay down during their Option period.

Property taxes are high and cap rates are typically between 2-4% from what I have seen so far.

The net proceeds would be the actual amount you received after deducting the payment to the program.It's advisable to consult with a tax professional to ensure that you accurately report the sale on your tax return, taking into account any payments or obligations associated with the program.

Changing the deed is a sale and taxes and increases are due. 

While Schedule E is indeed where you report losses on rental real estate, your tax situation is at the level where a professional doing it would greatly benefit you.

You have to just go with what they give you. they charged me right away the $97 (plus tax) then I was like umm wtf?

Hello everyone. Hope all is well. I just started investing in real estate. I am looking for a CPA and an attorney.  Can Bp members advise me on where I should start and how do I find they are good. The accountant that...

As for functions, for the CPA it would be someone who can provide general REI tax advice as I build my portfolio, and for the lawyer, it would be someone who can assist with the doc side of rental purchases when needed.

6) Are school taxes coming up and going to cost you another chunk soon?

He was very knowledgeable of entities, partnerships, JVs and tax implications.