Purchase idea

[Patricia Franciulli]

I found a home on the mls that need 20k or repair. It had mold, the a/c may not be working, plumbing issues, some doors missing, some water damage, no flooring and maybe some foundation issue.

Listing agent REO property wants full price for this house that I appraised around 205k max 215k..

How much you would put an cash offer for? Please do not forget the 20k of repairs and all the other issues above..

There is no other offer on this home, it has to be cash and the home has being on the market for 3 months. I want to do a 1031 on this deal..

[Steven Hamilton II]

Originally posted by Jackie Lange:

sounds like more than $20 k in repairs/ The foundation alone could cost that much depending on the # of piers needed.
When you say flip it, do you mean a wholesale flip or do you mean rehab it?
You cannot do a 1031 until you have owned it for a year. So, do you plan to buy it, rehab it, then keep it as a rental for a year so you can do a 1031 exchange?

or just a quick wholesale flip?

@Jackie Lange ,

@Patricia Franciulli ,

Actually you can 1031 before that time. The statute does not specify. That said, you MUST hold it for investment. Flipping is NOT for investment(that is inventory).

What is being discuss is still flipping. Just because your rented it out does not make it a rental property when you are flipping. The IRS WILL catch up