I am a wheelchair user myself.Before my disability I worked in construction for 15yrs remodeled 1 home I lived in and built my 2nd home.I'm currently trying to research hard money lenders and any tax implications there might be for me as I am on SSDI and collect a disability pension.I'm thinking I might be able to buy a house at sheriff sale for around 70% ARV and that's assuming somewhere around 30-40k on rehab work inside doing the kitchen,bath redoing carpet and flooring and patching painting drywall throughout the house from the neglect/abuse of the foreclosed homeowner.In my research I know to check for secondary liens and back taxes.

Should we have them do seller financing for the amount they can gift us each year without further tax implications?

I am curious as to input on regulations and code implications in the multi family market.Many people recommend staying under 4 units;  Does anyone have feedback on the model of 5+unit properties versus standard tri plex and quadplex investment and management?

Any profits you make are taxed at your income level, plus Medicare and Social Security tax.

The social factors that drive success are all in place there so its a solid market and worth it to grind out the search for the right properties. 

Think of it this way - if her story is true then she has a high likelihood of a family member, friend, or someone else in her social circle to help out.

Or when you sell, defer the capital gains using a 1031 exchange, buy a larger property and repeat.My question would be if you can do a 1031 immediately after the rehab is complete, but haven't held it for a year, does that carry with it the same tax implications.

Now depends on what ROI, asset class you are willing to deploy your capital, research and narrow down the market, socialize other investors who have invested there and what their experience has been, vet TK providers thoroughly and definitely visit the place atleast once to see things through your own eyes.

There are many other social issues might arise from adapting this law such as landlords might discriminate against families with kids under 6 years old.

Unlike passive rental income, the income from an active trade or business is subject to self employment tax (a nasty 15% tax commonly referred to a "social security and medicare" by working folks).