Are “Live in Flips” really worth it?

[Logan Jorns]

Hello BP community! I’m a new investor who is about to finish up my first flip and come the first of March, will close on another house to flip. I’ve heard a lot of buzz about live in flips and I’m wondering your opinion on them. Are they really worth having your money tied up for 2 years just to avoid paying CG tax? Yes, it may be less money if you decide not to live in it, but you then have money available for your next investment rather than having it tied up for two years. I was wondering if they are really beneficial for new RE investors? Looking forward to your responses! Cheers, -Logan Jorns

[Mike Cumbie]

Hi @Logan Jorns

It depends alot on your personal preferences and those of the people you live with. I know If I told my wife we were living among sawdust, tools and caulk getting stuck on the bottom of her slippers....... I would be coming up with a new plan :)

But if I was back in the day where it was just me (and I wasn't as spoiled as I am now with running water/TV/Internet and electricity, I'd have a cot up in a room with an extension cord running a fan so I could sleep.

So it all depends on your comfort level.