Living in the home to flip

[Brent Wofford]

We are looking at getting into home flipping. What are thoughts on living in the home you intend to flip? We may have an option to purchase a home and be able to live upstairs and remodel an unfinished basement. Construct an apartment and then live down stairs and remodel the upstairs or rent it out. Pros and cons of living in it while in construction.

[Marshall Leipprandt]

@Brent Wofford If you don't mind the construction noise and can be flexible, I'd do it. Makes sense financially. Also, if you are living there as your primary residence for two years total, you may be able to exclude a certain amount of capital gains taxes upon selling. Mindy Jensen from BP has talked about doing "live-in flips" for the last 10 years or so. A great way to buy, add-value, save on housing costs, save on taxes, and make a nice profit. If market does take a turn downwards, you can always keep it is a rental long-term until market conditions are more favorable.