All Forum Posts by: Chris Melear

How do I file taxes so that the profit from the rehab shows earned income. 

I'm currently unemployed and have an open Roth IRA. I have just rehabbed and flipped my first deal. I wanted to know if Im able to make contributions (monthly when I was employed) to the IRA since I'll eventually be paying taxes on the profit. Also, how would I need to pay taxes on my profit in order to since I dont plan to open a company for myself. I only plan to rehab 3 to 4 a year.

No, that's another main issue.  My best thoughts were to get  from HGTV shows, internet, or magazines.  The expected home I look to start into are a normal 3 BD ranch or similar with maybe upstairs attic finished for extra BD, or partial basement if room for small BD.  Would it be best to just give in and pay for advice from an interior designer for their thoughts to tell me a few things about some priceline  expectations to know when figuring out my rehab expenses(cabinets, countertops, to go with flooring, etc).

Thank you, I appreciate your reply       

Im using a remodelor/gener contractor on 1st potential flip.  I dont have ideas of what is best towards keeping floor plans or knocking a wall out here or there for best look to quickly sell..  Who is usually to get advise?  Is it my realtor most of the time that will tell me ideas or do most investors have a interior designer part of their team (and pay extra out of the pocket until iv learned the potential ideas. Does any remodeling companies give their opinions when bidding possibly or is it mainly up to me camparing to comps.        Please and thank you in advance for any advise. 

Thanks, I appreciate your advice 

Congrats, and many deals to come.  My first goal is to Rehab and sale for profit or refinance to hold and rent the property.  Will you advise me the best way to know what the expenses are(Do I bring in a general contracter to give ballpark figures of costs of needed repairs in order to know a price to offer.  Plus, did you use a licensed general contracter or put together your team and sub out your contracters yourself, and how was a timeline expectation put together?  I read so much and have book knowlege but no 1st attempt to rehab a property and want to get the first started.  Please and thank you for any advise in advance.    

Thank you first of all for your reply.  My first thoughts now are will a lender assure me an ELOC with my same circumstances to begin with?  Is the ELOC deductable?  And what % of the value will they give a ELOC to eventually somehow use again for the next potential deal of another cheap rental, or wholesale, etc.  Also do you know how long the lender looks at ownership with cash flow to use as accounted income to help enhance my chances of approval down the road.  Thanks again for your info.

Im able to buy a 30,000 rental with tenant.  Due to not approved for a loan to begin with, if I paid cash, what is the strategy to use my equity for buying the next rental and not have my $ tied up in one property.  My income is limited annually because of disability benefits given for medical issues, but the max allowed to make is 13,000 yearly. My plans are to buy rentals for more monthly income and was hoping to finance in some way to buy and hold more. Please inform me of any advice anyone may have.  Thank you in advance.