Eric Thomson,I have a split second between appointments here.Here is an example that should explain it for you: Gain on the sale of a principal residence that is otherwise eligible for the $250,000 / $500,000 exclusion may not be excluded to the extent that gain is allocated to a period of "nonqualified use."

In addition, the properties I’m looking for range from 12-20 units, and properties of that size in this market appear to be attainable in the mid-six figure range.I failed to mention this previously, but I work as an underwriting analyst on commercial mortgages backed exclusively by multifamily assets.

The JV partner is secured on title and we are able to work exclusively with JV agreements....forming separate LLCs for each deal gets a bit cumbersome and expensive.Our back-end partners usually buy the property outright as a passive investment.

After you move out you must sell within three years to be eligible for the Section 121 exclusion (home sale).

However, if that property does not sell, and buyer chooses to take property off the market, you have every right to discuss this opportunity directly with owner.I agree with comment stated above, I would not circumvent the realtor, especially in a town in which this broker seems to be exclusive agent.

I just found a painter to do an entire 1,600 sf apartment (walls and trim) for around $700 labor -- if he's good, I'll use him exclusively for painting and have my handymen take care of other items.

Scott Williamson,That is where either the insolvency exclusion will fit in or you will treat it as a sale of business property adding the sale price plus the cancelled debt.Example:Taxpayer owes 200k on rental.

I would take the 250k exclusion for primary residence for the side you live in rather than 1031 for various reasons.

I also negotiated an exclusive purchase option at 155k for the next year, so I can save for a few months to make a down payment.

The turn-key outfits and wholesale companies seem to all focus exclusively on the houses and ignore the multi's, some of which can be picked up for fantastic prices.There is a potential financing negative, as the cheaper price point makes it even less likely to find a lender for such a small loan amount.