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Post by Ahawkeye on Jul 11, 2017 6:03:47 GMT -5
I may have an opportunity to flip a house in the near future, I'm handy and knowledgeable enough to stay away from certain problems but I was wondering if anyone here has tried it. Was it worth the effort? How is the profit taxed? What were some of the struggles you had?
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Post by Deleted on Jul 11, 2017 6:47:53 GMT -5
My older brother that is retired flips around 2-3 houses a year. He likes it to keep him busy on his own schedule. I don't think he ever lost money, but broke even (after salary) on one, but made around netted $40K on the last one. I think he ranges from $10 - 30K. It all depends on the area on how much he fixes it up.
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Post by dusty20 on Jul 11, 2017 8:26:30 GMT -5
I kind of flipped a house. It was one of those deals where they built it in 05 when the banks were giving out ridiculous loans to people and within 5 years they trashed the house and it was forclosed. The good thing was that we didn't have any structural issues and the mechanics were good. New floors throughout the whole house, fixed water damage, few new windows that were broken, lots of broken water lines and manifold since they winterized it after the first winter and it froze, new interior doors since they judo kicked them open, new toilets since they either broke them or they froze and broke, shelves in closets were ripped out of the drywall, new paint all the way around, landscaping and new appliances. House sold within a week of being on the market for a couple thousand less than the asking price.
We used the profit for our house out in the country, after all the realtor fees it gave us our 20% down. We lived in it for about 2 years. If you don't sell it within a year (I think it's 1 year) there is no tax on profit if you sell before a year you get the flippers tax.
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Post by treetop on Jul 11, 2017 12:07:10 GMT -5
About 35 of them your money is made when you buy the home you have to get a good deal with enough room to fix the home back up pay a realtor and closing cost pay tax's and still make what you would like when your done.
Some Tips
Get another check book don't mix your flip home money and your household money together
Remember your going to pay water heat/cooling lights mowing trash these can add up fast and they are real cost
I will get my homes done from start to finish and back on the market in 3 months or I wont do it.
You will have some tax's due either spring or fall maybe some of both depends on turn around.
Myself I carry home insurance and liability I would suggest you also
You are going to pay realtor fees if your buying through a realtor a lot of them will cut there fee the second time not all but ask
This is about making money your not going to live there but don't go cheep it looks it when its done also remember what you like may not be the best choice go to some new homes or open homes get ideas on flooring
cabinets paint I hate some of the paint and flooring choices I use but people love them
Hire someone if you don't know how to fix or replace something another good reason for liability insurance.
Unless your not working it will take a toll on your home life make sure your wife kids can take it, Its not uncommon for myself and brother to work 3 or 4 hours after work and Saturday and Sunday 8 hours each.
I will tell you straight up if we can't make 30 grand to split after paying all bills realtor fees taxes I won't do it its way to much work risk and time out of my life, not sure what price range you looking at but can you afford a 100 to 150 grand loan if it don't sell carrying coat can kill your profit fast your price range maybe way less there's also a chance you may have to put your home up a lot of banks wont want to loan you money for a house you don't live in.
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Post by bill9068 on Jul 11, 2017 13:22:16 GMT -5
Treetop is right, you make all your money when you buy the house. Last one my wife did we paid 40k for the house and 5 months later sold for 140k. She spent 60k putting the house back together. 40k isn't bad profit but then taxes are due. Dont know how much our accountant did all that. My wife did a few things to the houses she buys but I have some retired police friends who we hire to rehab a lot of the time.
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Post by Deleted on Jul 11, 2017 18:40:11 GMT -5
I'm a realtor and I flip houses on the side, if you have any questions feel free to PM me.
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Post by duff on Jul 11, 2017 19:52:53 GMT -5
Good advice hwre
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Post by hornzilla on Jul 13, 2017 14:28:16 GMT -5
Never flipped a house, but I have flipped a sprint car several times. And they hurt you physically and financially. Lol
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Post by featherduster on Jul 13, 2017 15:46:21 GMT -5
Never flipped a house, but I have flipped a sprint car several times. And they hurt you physically and financially. Lol  |
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Post by Jamie Brooks 1John5:13 on Jul 13, 2017 17:33:29 GMT -5
I have been up-side-down on a mortgage, but I can't say that it was flipped.
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