I'm currently a Georgia license holder and just need to take the Texas state portion of the exam.  

They’d only receive a step-up in basis on the part they inherited when your parents passed away.Your portion, on the other hand—since you inherited it entirely—would generally receive a full step-up in basis to the property’s fair market value at the date of death.

5) Those that have to pay a portion of their rent - some don't.

Yes CMHA is a great tool to use and have as a portion of your portfolio.  

I understand better when I have numbers in front of me.For simplicity, lets say there was no depreciation and no realtors fees.So lets say that the purchase price was 200K and I put in 10k of money for remodel into it, sold for 250K so my taxable portion is going to be 40K?

If I do not take on the properties, he will sell within the next 12 months to an unrelated party and I will never receive any portion of the proceeds.

@Storm BucknorWe manage almost 100 S8 leases in the Metro Detroit market.While S8 may address tenant nonpayment issues, there are other challenges with tenant-portion of rent payments, tenant damages, dealing with S8 Annual Inspections and dealing with the nonresponsive caseworkers (underpaid & overworked).It also does NOT pay more than market rent.

This first portion is the end result.

As a former, "Fix-and-Flipper" myself, the foundation part was the portion I was the most fuzzy on when I started out.

Also consider a portion of your funds for a prepaid college plan if available as you might be able to beat inflation.