First flip and fix, still may fix and hold

[Josh Faller]

Investment Info:

Single-family residence fix & flip investment in Kansas City.

Purchase price: $50,000
Cash invested: $3,000
Sale price: $50,000

ARV of $125k-$130k
Rehab costs of $25k

What made you interested in investing in this type of deal?

It was way too good to pass up. Still debating on fix and hold vs flip.

How did you find this deal and how did you negotiate it?

My amazing real estate agent

How did you finance this deal?

Hard money LOC pulled off of my rental home

[Dan Krupa]

@Will Barnard "then the IRS could easily charge you ordinary income tax rates even if you held for over 1 year." I took this to mean if you held it as a rental and sold it after a year it would be taxed as regular income. If you are stating if you simply held it for a year/it took you a year to flip it and then sold it would be regular taxes then you are correct. A rental sold though after 1 year is long term capital gains. I think we are saying the same thing and I just misunderstood you.