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Updated over 6 years ago, 06/03/2018
Rehabbing & 1031 Exchanging Profit
Hello Guys,
I have a question to those who flip 25 plus homes a year. What is the best strategy out of the two I am about to put down below
Strategy one: Flip homes sell them, take profit and keep flipping, paying taxes at the end of the year
Strategy two: Flip homes 1031 exchange profit into the next deal until you have profit greater than your flips that you have to buy multiunits due value of past properties being a good amount of money.
Has anyone done this ? What would you recommend ?
This is what I see? Benefits of 1031 exchange are you avoid paying taxes and if your in real state for the long term might as well keep your money in real estate, I see real estate as being a money printing machine. Once you get into multiunits you will cashflow every month, while you are rehabbing it, and tenants are paying the loan at the same time.
What do the you guys think ? Please give me cons and pros of each scenario. (only guys who have done 1031 exchange and flip more than 25 plus homes a year )