Over time, increase the size of the properties you are buying as you gain experience.

Since this property was an investment as a rental will we have to pay capital gains on it or can we sell and put the money without paying gains and use as down payment to buy a house of our own?

Hi I'm new to real estate investing and I recently learned about acquiring a property Sub2, but something came across my mind is that if I got the property and wanted to rent it out but the home need repairs or updates in order to gain more monthly rental income where would I be able to get the funds from to do so?

They would then sell it at (hopefully) a profit and be able to exclude the gain from their taxes.In a perfect world, we’d do this sequentially so that I’d always have a project and we’d be cycling through the houses (son - daughter - my own place) so that each of us is building equity tax free.

The "just market value" of their land is then listed at $250K (the county defines JMV as "The price at which a property, if offered for sale in the open market, with a reasonable time for the seller to find a purchaser, would transfer for cash or its equivalent, under prevailing market conditions between parties who have knowledge of the uses to which the property may be put, both seeking to maximize their gains and neither being in a position to take advantage of the exigencies of the other.")I am very interested in learning by participating in this deal but I don't know whether i am getting screwed through 1) him assessing my basis too low by valuing it at 212 instead of 250k and 2) the terms of the overall deal.I am leaning towards doing the JV since there are other places where I can learn about rehabbing and renting, or flipping, but this property offers a great opportunity to participate in a development with a high quality experienced guy who is very well connected. 

Hi all,I am gaining interest in real estate investing, and I would like to join a local club.

And besides, what I think doesn't really count because it's not 'my' mone that you're trying to gain from.A deed is only used once.

Llpeng...I congratulate you for recognizing your "new", but I must caution you about believing you can ask a few questions on this site and will gain enough knowledge to keep from getting sued or losing money.  

If you sell now you get the exemption living there 2/5 years for capital gains but I would assume you loose that if you had to sell in a hurry.  

Now i need to see what the tenant says and figure out the capital gains taxes.