Newbie Capital Gains Fear

[Brian Smith]

Hello everyone,

This past January I purchased a property to flip. After three months of renovations the property is set to hit the market on April 1st. Most of the work I have completed myself. The total renovation cost so far totals around 15k. The ARV is 320k, purchase price was 160k. Im looking at around 160k return. Now, the part that isnt exciting is the tax liablity that comes along with that. I ran the numbers last night and it seems that I will need to pay 60k in capital gains tax.

I'm exploring ideas to avoid paying the tax.

Would keeping the property as a rental and cash out refi. be a better option?

Any other suggestions?

Thank you in advance!

 

[Brian Smith]

Quote from @Josh St Laurent:

BRRRR All day on this@Brian Smith!

If you can do 145k in forced equity minus holding costs every 90 days you'll be in an entirely different financial position in a year. Best of luck!

Thanks for the reply! 

This is my first flip. I get the chills studying the numbers and realizing how awesome real estate is!

I'm going to stash this property in my portfolio and move on to the next😎