The dissent agreed with the majority that the sale must include a permanent dwelling and that a principal-residence sale must include a home and improvements, but argued that the dwelling could be demolished and rebuilt as the petitioners had done, where even though the original house was gone, this would be defined as renovation of the original principal residence, not as a different residence, and not interrupt the 5-year period.

.$1100 per year x 10 years holding period = $11,000*New Appliances: $2,500*New Water heater: $700*New A/C unit;     $3,500*New Furnace:     $2,500*Repaint interior: $2,500*New Carpet:        

Mine was prime plus one percent for a regular loan and amortizated over a longer period for a homePurchase.

What would be the holding period in this case?

Capex is wildly variable, but I'd go with at least 3.5%, playing off the 27.5-year depreciation rate for residential properties...but that's only AFTER the initial period, over a very, very long period, if you are tightly controlling costs. 10% is more reasonable, and some years, especially early on with delayed maintenance, it'll probably be 100%+. 

Offers are generally negotiated sight unseen with a due diligence period written into the contract. 

We were able to negotiate a 12 month interest only period with our lender to help facilitate the value-add process.

Would it be during the inspection period or maybe if I needed to get some repairs done in the future?

@Griffin Francis EatonIf the price is too high to pay cash, it’s too high to buy period.

Put the partnership through a healthy trial period.