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Originally Posted by xepherys
DDDDave/gar1976: I'm not sure I agree. Real estate is no liquid, nor are the profits on sale of real estate <30 days after the date of sale. If you reinvest your earning from a home sale into other real estate, your funds are never liquid and are not taxable.
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Not to be a smartass, but I don't care if you agree or not.
Gar is a practicing CPA and I have been in commercial RE for 25 years. Your profits certainly are taxable. There are ways to DEFER these taxes (an IRC 1031 Starker Exchange is one way..) but the key word is defer. There are also very strict rules that must be followed to complete a tax-deferred exchange transaction. These rules are hard to comply with in small residential transactions and require using an exchange intermediary which adds additional costs.
Like I said, take a few classes. That really is the best way to get started in any new business.
Good Luck.