When you experienced rehabbers are looking at a house with 100% cash, do you ever do a high purchase price and then request a huge credit for repairs. For example:
List: $45000
Estimated repairs: $35000
ARV: 110000
What would be the pros and cons of doing a 'purchase price of $50,000' and asking for a repair credit of $15,000 making the effective price $35,000? Would this not make buyers in the future after repair feel better thinking that I bought it for $50k, and potentially limit your capital gains tax?
I welcome all advice and thoughts on the subject!