Single family homes cost more and taxes are higher, but you don't have condo fees.Run the numbers for both.

The renovation will cover the following:Kitchen - new floor, cabinets, appliances, paint, and remove a non-load bearing wall to open up the kitchen and living room.Living room - new floor and paint2 main bedrooms - new floor and paintMain bathroom - gut renovation, new floors, vanity, sink, showerBasement - convert portion of the basement into a 3rd bedroom with new sheetrock, paint, and flooring for finished part of basement and staircase, - wall off 2nd bathroom and gut renovatePurchase Price: $60,000Repair Cost: $30,000 (my own initial estimate came in around $25-30k so I am using 30k to be safer)ARV: $130,000Down Payment: $13,500 (15%)Hard Money Loan: $76,500 (85%)Monthly Expenses (6 Month, Interest Only Term):Interest: $825 (11%)Taxes: $220Insurance: $40Total Monthly Expenses: $1,085Total Expenses Over 6 Month Loan Term: $6,510Cash in the deal by the time of ReFi:Down Payment: $13,500Monthly Expenses for 6 Months: $6,510Purchase closing costs: $2,500Total Cash in Deal: $22,510Refinance:ReFi Loan: $97,500 (75% LTV)HML Payback: $76,500Closing Costs: $3,000"Profit" after ReFi: $18,000Equity after ReFi: $32,500Rental Income:Gross Income: $1,300/monthReFi Mortage Payment: $642/monthFixed Costs: $260/monthVariable Costs: $299/month (23%)Cashflow: $99/monthMy 2 exit strategies would be to simply flip the house, or, if the valuation comes in slightly lower than expected, I am confident I can still rent it at this price because it is a very rent heavy area compared to owning and continue with the BRRRR method with slightly better cashflow because of a slightly smaller ReFi loan amount. 

Many of the buildings for sale in my area of Maryland (Washington County) are old and have deferred maintenance issues.

You have no net gain, thus don’t have to worry about capital gains tax.

Provide the lender tax returns showing you are reporting the  income and paying taxes?

If you put down 20%, after taxes and everything, you might be cashflowing a few hundred dollars, but that's only before expenses and repairs. 

That makes you a dealer and subject to ordinary income tax without the option of a 1031. 

I will want to continue to continue to defer the taxes but in an UPREIT.

Our normal model we shoot for 400% return in 2 years, with Capital Gains Tax rate.

Does anyone know if we do this in a business real estate development deal iF the interest on our lines would be deductible? If not does anyone have suggestions for an investment vehicle where they would be? We have an...