Negotiations led to a groundbreaking deal with seller financing: 0% down, a 5-year balloon at 5%, and an additional $20,000 at 5% interest upon the liquidation of their business, providing a financial buffer during our transition.Equally crucial was engaging the managers who knew the ins and outs of the business.

Have you perused the Strategy section of the site yet?

Don’t forget about 5% cost to close in addition to the purchase price.Assume leverage of about 65% on a $2.9M purchase price, you’d need to invest around $1M just to get that cash flow.

However, military who occupy a house for 2 years can get an extension of an additional 10 years and still have capital gains excluded.  

This is asked because landlords can’t and obviously you could say your time was worth $1,000/hr or more.If you add it to your basis I don’t think there will be a way to show the loss other than selling.If you really prefer to do your own taxes maybe you can hire a local or BP tax pro just to handle this transaction?

@Dan KurtzWelcome to the site!

I think they call it "the hood" because there are mobile homes on my block and it's not water-front, and while mine is a mobile home, it has two additions that make it look like a full sized house.

Eventually I would want to get into renting and possibly Airbnb in addition to the fix and flip.If anyone has any suggestions to help me figure things out, I would love to hear them!

Here on the site there is 20+ tax professionals that could help you.

As far as reserves go:0 Months PITI when LTV < 65%6 Months PITI when LTV > 65%12 Months PITI for loan amounts greater than $1,500,000 regardless of LTVHope that helps answers your questions, feel free to DM if you have additional questions!