That term, for tax purposes, refers to someone who buys and sells property as a part of his or her trade or business.When doing lease option assignments you never take ownership of the property, so the term would not apply.That being said, income from lease option assignments is considered ordinary income and is taxed as such.

People's bare feet do the exact same thing!

Pre-approved would mean they have already pulled my credit and whatever amount I have been approved for will pretty much be an exact estimate at the amount of money they will loan me.

I like the idea of flipping and holding properties, I think that is a balanced way to grow capital and build a portfolio over the long haul, that is exactly what we are doing.See you around the site!

What exactly is the permit for?

"1st mtg is willing to contribute" when you say this it makes me think the realtor knows exactly what they will take.

I'm not sure exactly how sub2 data shows up on a tax return, though.

,I absolutely wanted to go 30 years for the exact reason you stated, but the bank will only do 15 on an investment property and as I stated I couldn't find any other lenders who would even consider such a small loan.

There is also a glossary of real estate terms which is useful if not exactly complete, a list of potentially useful websites for the investor, a section on IRS trustees and custodians, and the complete Section 1031 (Starker Exchanges) of the IRS code!

That, and having reserves set aside, in case something big breaks.All of that said, the numbers looking pretty promising (though I don't know anything about what fixup costs you might have).Refinancing #2 - because it's a 5-unit, it's considered commercial for lending purposes.