Maybe you just eat the price reduction which reduces capital gains... ??

Given my current capital/time/ability I am looking to possibly cash purchase a mix of low cost SFRs and multis (10 units or so total) in my home town Cincinnati area with cap rates in the 12 range.

My goals in real estate is to build capital by flipping properties, and using the capital to buy apartment buildings to rent out.

A rehab and sale can take well in excess of 4 to 6 months.Lastly, lawyers and professional organizations can be expensive and eat well into your capital.

This spike in values are due to investor capital.

:D).I plan on attending law school (not sure yet of specialization, but I will be pursuing something in financials: tax, capital markets, investment banking, REITs, etc) beginning 2014, and consequently, have a "gap year" to build experience (any productive kind) and possibly earn some modest cash to put towards (near)-future investments.

The capital expenditures and repairs/maintenance figures are high for the trailing 12 months, so I suspect the broker would argue that the reason for the negative NOI is due to recent renovations.

I'm looking at wholesaling as a way to build capital for my future investments.

If you had the intent to hold for investment and were waiting for capital appreciation, then it would certainly qualify for 1031 Exchange treatment.

I will however focus much of my capital and investable income into Multi Family Real Estate.