Live in Flip

[Jace Thornton]

So I have decided that getting started I would look for a live in flip. Being that I am looking for a house to live in that is at a good price that needs some work, what calculator would you suggest using to evaluate deals? Also do you take into account how much the property loan will decrease over the time of occupancy? Thanks. 

[Mindy Jensen]

Hey @Jace Thornton. Welcome to BiggerPockets. 

Live-in flips can be a great way to save on capital gains taxes - and when the payoff is big enough, it's worth the hassle. 

A few tips:

Plan vacations. You will be living in chaos - taking time off to recharge your batteries away from the mess is key to not going insane.

Keep at least one clean room. Your profile pic shows a child. If you are living with a child, you'll want them to have a safe place to play. Keep at least one room free from construction debris so you can put them down instead of carrying them everywhere.

Stay on top of your contractors. If you aren't living in the home, a delay isn't such a big deal. If you're living there, every extra minute can seem like torture. Make sure they stick to their schedule.

Take time off. If you are using contractors to do all the work on the home, take some time off between projects. If you are using the live-in flip to avoid capital gains taxes, you'll need to live there for at least 2 years. No need to rush through the work if you're there that long. Take sensical breaks to relax from living in craziness.