For instance, if I place a property under contract in Raleigh, NC and later decide to walk after I've incurred expenses, those expenses simply stay on the books until I eventually purchase a property in Raleigh, NC.

So if both sides are about the same size, roughly half of your gain could be deferred, and the other half would be taxable since it’s for personal use.Later on, if you hold the property for a while and eventually convert the whole thing to your primary home, you might be able to combine the 1031 rules with the home sale exclusion under Section 121, but that takes careful timing and planning.It’s definitely worth mapping out before you sell so you don’t miss any opportunities.

I’m here to learn, connect, and eventually build my portfolio.

I am extremely new to real estate investing, and am looking to buy my first home to first live in then eventually keep as a rental property.

The long-term goal would be to eventually sell the multifamily properties once our cash flow reaches a certain level and transition to being completely debt-free, living off the rental income from the fully paid-off homes.Does this seem like a sound strategy from an investment perspective?

Banks do not want to compete most investor loans are now funded by private equity companies and eventually securitized.

Since I have specialized in this space it's not hard for me figure out what is going on eventually.

@Morris Layton thanks for the insight I'm near Chicago at the moment I wanted to do a couple projects maybe single family homes so that I could learn the process and continue to network with people then eventually venture off into other markets, any advice?

We may eventually have to hire an engineer, but probably sell it to a builder before that happens.

When you sell it on terms, each payment you collect typically gets split between principal (which just lowers your note balance) and interest (which is the taxable part).I’m not an expert on the accounting side, but I do try to stay open to learning more about these things as they come up, especially as I dig deeper into different parts of the land business.One tool that helps is a simple amortization calculator like Bankrate, it shows how much of each payment is interest vs principal.Also, IRS Publication 537 is a solid starting point for understanding how installment sales get reported.If nothing else, keeping clean notes and setting up a system early makes tax season way less painful and eventually bringing in a CPA who “gets” land notes is well worth it.Here's various resources that could be useful to you...Books (For Foundational Knowledge) 1.