Flipping my first home

[Lyndsey Whiteaker]

Extremely new into flipping. I have finally secured a career ( insurance agency owner) that will allow me to have some free cash to throw into the market in St.louis. My goal is to flip a bunch of properties to get enough capital to put into a large multifamily. So my question is what are the rules of flipping? Do i have to own the house for a certain period of time before i sell? Whats the best finance option to go with ect? Any insight would be greatly appreciated!

[Matt Motil]

There are no rules. At the end of the day, it's a numbers game and if the numbers make sense, then play ball. If you own the property with the intent to flip it, then you will pay capital gains taxes. If you hold it for a longer term, typically 1 year and 1 day, you can use a 1031 exchange to defer the capital gains taxes by rolling the profits from the sale of the first property into the purchase of a second property. It's possible to avoid capital gains taxes in flipping homes, but those of us that do it regularly just look at CGT as the nature of the beast and plan for it in our calculations.