Anyone letting you into a deal also must trust you.I've done many no money deals, one was a purchase over 850k and the seller paid me and kicked in additional cash for a development, never would have happened by anyone with less than exceptional skills, knowledge and with a personal reputation.

Now that I have a steady wholesaling game going, I have no need to rehab except on occasion I get the itch to get busy on a rehab.Wholesaling doesn't have to be a jump off point for other things and something to quit once you have a chunk of money in the bank.

There are some exceptions to this rule, such as when the landlord pays the heat or lives there, or if the tenant is subletting.

Just be aware of the higher taxes on trusts (35% tax b4 $10,000 b4 distribution to beneficiaries), & with the exception of The Mass. business trust, trusts per se are not designed to be in a business or a trade, such as flipping properties or finding yourself inadvertently achieving 'dealer status'.

A lot of my friends have become exceptionally wealthy holding houses.

For a single person you may exclude 250,000 of gain; however, for a married couple you may exclude 500,000 of gain.The one exception is that you will be subject to depreciation recapture on the depreciation that was taken or was allowed.Andy Chu, The first part of your post is correct in regards to the 2 of 5 years rule.

Especially in my area, I don't see prices rising much more, except for in niche neighborhoods that are currently being heavily developed.

As the argument goes, the S corporation can establish a salary or bonus for its stockholder-employees, and pay social security and medicare taxes only on the salary or bonus.Issue #3: Exceptions to Passive Loss Rules, We are the high earner couple over $150K AGI so we are getting ZERO tax deductions for rental losses.

It's kind of like wholesaling, except I have actually closed on the deal.This strategy worked great when the market was appreciating at a crazy rate.

***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.https://www.biggerpockets.com/forums/776/topics/960183-what-they-dont-tell-you-about-cheap-rental-properties?