On the other hand, you get favorable capital gains tax rates vs. short term cap gains or ordinary income (and maybe self employment tax) on a quicker flip.

To the ordinary guy they will say, "See, stocks went up, GDP increased!!"

Short term and Long term capital gains will not be considered here as this is all ordinary income from a trade or business and will documented on page 1 of your 1065.

The net result is that the "taxable income" from the rental may well be negative even though the cash flow (aka money in your pocket, which is rent - expenses - mortgage payment) may be positive.There are limitations, though, on your ability to deduct this against ordinary income.

If anyone is fully able to deduct the passive losses created by a 1% property against their ordinary income, then net would be better.

When the girls were 3 & 4 I had a hammer in their hands lol).Anyways, I have done it all; tiling, drywall, framing, installed doors, carpeting, rough and finished carpentry, knocked down walls, installed cabinets, laminate flooring(I didn't want the added expense of hardwood), finished my basement (DH did the electrical although this does not appear hard to learn), designed and built a 20X20 paragoda/arbor for my patio (with some manly help) and installed a vinyl fence.

Not recommending a theme, but maybe something somewhere a little out of the ordinary to differentiate your house in the buyers' memory.

Find the courts that do this and you'll have your list.Here's some quick information:Judicial ForeclosureThere are two types of judicial foreclosure proceedings in Louisiana, executory and ordinary process.The executory process takes place when the lender uses a mortgage that includes an "authentic act that imparts a confession of judgment", as provided in the Louisiana statutes.

My understanding is that any depreciation one cannot take against his ordinary income (for reasons such as making >$150k) can be later used to offset any capital gains down the road.

Do you avoid making offers on REOs if they have major unpermitted work like a patio, reroof, or fireplace or room addition?