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Updated about 10 years ago on . Most recent reply
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Best Strategy Tax-wise for cashing out on a flip
I am flipping a house in Milwaukee, WI and am trying to figure out the best strategy for cashing out. From what I can gather, I have 3 options. Sell the house right away, rent it for awhile then sell it, or do some type of lease option or rent to own. Tax-wise, the immediate sale seems like it would be taxed the most.(but I would get the money back quicker) Any benefits to do a rent to own over just renting? How long should I hold it before selling? For example purchases, I bought the house for $60k, rehab will be $25k and I plan on selling it around $120k.
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@Nathan Schoenborn What would you like to do? Do you want you money back to do another flip or would you rather sit back and enjoy the passive income that comes from selling on terms or financing?
A third option might be to put a tenant in the property and then sell it as a loaded rental to an investor that wants passive income. First decide what your ideal outcome is, then figure out how to structure that.