I'm less familiar with all the details to this, but if you structure this properly you can continue to defer some or all of the capital gains tax, and just collect interest payments from the buyer.

I may find someone locally to co-wholesale with as one colleague mentioned so I could learn the process properly. 

If I properly vet a tenant and have a good screening process in place, is it a wise to invest in lower income neighborhoods? 

Yes, any losses can be carried forward until the time when you can take them...or you sell and those losses can then be used to offset your gains.One thing I would keep in mind, is that lenders may not like to see that loss on schedule E.

You would need to start in Cleveland, proper or wait until you can acquire some more capital.

*shrug*By contrast folks actually residing here, that are here lawfully...Teach them how to hack FICO, they do exactly what they are told.Teach them to season funds, they do exactly what they are told.Teach them (or their CPA rather) what stuff we look for on Schedule E, make sure the rent and fair rental days are accurate, get aggressive with depreciation so no one is paying extra taxes for no reason, et cetera. 

Hey BP, I've recently made an account (yesterday) and have been reading articles, the e-book that BP is so kind to publish and I've been looking at different real estate deals in my area (San Diego) and I've noticed that although I typically never find properties that do better than 1% rent over price, there are some properties given that the down payment is high enough, that I am able to "beat" so to say, the 50% rule.

If you are soliciting investors, you will need a securities lawyer to prepare the proper documents to ensure you are exempt under Rule 506 of Section D of the Securities Act.

A lot of people like having canals in the backyard for casual fishing and can be a peaceful environment when a patio is set up properly.

@Phillip Dwyer -- Thank you, please include me on e-mail reminders if you would.