Mee Blumenfeld: My two friends just split $120,000 flipping a house in 2-3 months. The return on that is triple to quadruple digits in percentage terms. That's a rarity, but it happens.
Lolita Deschamp: 2
Alma Twomey: I find that a combination of both work well as one is creating a passive income for the future and the other is generating immediate cash for the next project. Both are good investment strategies.Flipping has it's advantages as most of the time you would have a turn over of cash each time you would sell a property that you have completed the rehab. There are inherent cost in doing this such as the cost to hold the property during rehab. Things like the mortgage, insurance, taxes, cost of the rehab etc.If you simply flip properties and do more than 4 or 5 properties per year then the IRS would declare you a house dealer. Also there are tax consequences for selling your investment prior to a year as your would be charged as short term capital ga! ins which could be as high as 35%. Keeping the property for more than a year would be called long term capital gains and would normally max out at around 15%. Buying and keeping for rental or passive income is a step by step project and could be more expensive to accomplish unless you have sufficient funds to rehab, maintain the holding cost while finding a tenant, then there might be times when the rent ceiling does not cover the holding cost thus creating a negative for your rental.I find the ratio of keeping 1 out of each 4 is a great way to write off certain tax deductions. You have 3 properties that you would flip for immediate cash and 1 you would hold for a rental. Building your real estate investment Portfolio in this manner helps in the tax department also build long term passive income.You might work out a different formula as to the resale and those you keep, but some type of mixture would be beneficial.You might consider incorporating after a certain time as th! is would eliminate certain liabilities such as being sued, the! way you are taxed. check with your CPA, and/or attorney as to the best corporation that would give you the best possible tax benefits.I normally limited myself to single family and 1-4 units in the beginning. These are relative easy to maintain and you don't have the condo associations that might limit you in renting your condo. Most have a 10%-15% ceiling that can be rented at one time. If there is a waiting list you would be at the bottom, getting to the top might take a few years. This is a pain staking process and would take 2-3 years before you would be able to put this type investment on semi-automatic. You will learn along the way as to what make good investment sense, which properties to keep and which to flip. I am not familiar with vacation homes or rentals, however, these appear to be seasonal and are a different animal. You would have to consult with someone that is successful in thes type investment rentals as to the liabilities and cash flow.Keep up on the ! latest techniques about real estate investments, by reading many books on the subject or real estate investing, attending real estate seminars that make sense, join the local real estate investment club or group.I hope this has been of some benefit to you, good luck."FIGHT ON"...Show more
Somer Distilo: My dad invests in REITS.Last year he made 26% profit.It's a much easier way of investing in real estate.Would you consider opening a brokerage account.This flipping homes or renting only works well if you use cash.Since financing homes is costly.Closing costs alone can be 6% of the loan. Plus PMI if you don't put 20% down.And the interest you pay back over the years could make this unprofitable......Show more
Julieta Suleiman: Get your loan today from Ericson finance at 2% interest rate email:finance.ericson@hotmail.com today.
Reginald Maxi: Flipping Houses is a really very paying business. You can easily get Fix and Flip Loans form any good Hard Money Len! der and invest in the business. Then you have the chance to be again in! that same process after making a successful flip of a house. You can also rent out a property, and It all depends on a person's perception and ideas about future in real estate investment.
Deangelo Marchak: Flipping houses would be my favorite, but won't be an investment in the long run. (get it and get rid of it). Letting property, which you bought and are paying the upkeep towards is an investment. But I would register it as a business. The tax man (locally) like to take tax on capital GAINS. Thus, the investment loses x % of its purpose. (to create wealth.) Both have got advantages and disadvantages and it depends entirely up to you, which way you are going.Peace....Show more
Alonso Crehan: Rent To Own Homes - http://RentToOwnHome.uzaev.com/?JCgD
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