Posted by Nate(DC) on February 17, 2002 at 22:36:18:
Why not lease-option the house for at least a year and then sell it. At least that way the gains will be taxes as long-term and not short-term. Just a thought.
Also if the numbers are good enough, you do not have to live in the property WHILE it is being rehabbed. Buy it, fix it, THEN move in for two years, and then sell it. You might find there are still significant tax savings doing it that way, even when the costs of holding two properties at once are figured. And, your wife will be happy, which is more important anyway to your longterm success and happiness.