Holding back the money helps motivate them to stay honest and complete the job or never start it once you see their true intentions.Some say they need the money to buy materials.

@Ryan BrooksNot sure why the seller would do that as the lien stays with him not the property once you take ownershipAny $ he makes off the deal goes to IRS first do his best bet would be to sell it for $235k and get IRS and mortgage paid off then he never has to worry about itYou cannot assume someone’s IRS liens

I’ll PM you for sure.As an update, one thing we realized is that a HELOC on the property to be flipped (appraised for $85k) would essentially destroy our credit (large loan for a short period, closing out a line of credit after a short period).  

He would stay rent free and I would have my own house at 27!

Her mom had lived in the home for many years, it wasn't updated, and some back taxes were owed on the property.

I do believe the tax limit for gifts is 15k but I am not an expert in any aspect of real estate so double check.Is she only interested in getting a return on her investment or would she consider staying in the deal with you.

I've done a couple live-in flips before but nothing that required this much updating-- they were both mostly cosmetic.

Keep us updated!

Anyway I would like to do some renovations to the home now (cosmetics only.. exterior work mainly) and also start working on kitchen and bath cosmetic updates.

I am in the Seattle area now, I have a friend who is in Utah, who is also looking to get into investing as well, so I'm not sure if I should stay here or start there.