All Forum Posts by: Clay Teegarden

Hello all! 

I currently have 2 single family rentals but am looking to delve in to fix and flipping as a way to supplement or hopefully replace my W2 income. 

I have 2 questions as it relates to taxes for fix and flipping. First, how does everyone handle the capital gains on a rehab project? I feel like I e read before that 25% of net profit is a good rule of thumb to set aside for those taxes, but what have you all found to be true? 

Second, if youre doing fix and flipping in addition to your W2 income, how does that factor in to your normal taxable income from your W2? Should you set aside additional money aside from capital gains to pay for the income tax increase if you make a profit on a property? 

Thank you in advance to any who reply, it’s appreciated! 

Hello all! I am a newbie investor (1 property as of now, but I am looking to expand that currently). I have been diving in to reading materials and podcasts as much as possible, and have come across Pace Morby and the have subsequently gone down the "subject to" rabbit hole. I am just curious, does anyone know how frequently notes are being called by the originating banks? This form of investing seems almost too good to be true, and I am trying to find the hang up so to speak. 

Lastly, im curious as to whether having sold a "subject to" deal will affect the sellers DTI since the debt is still in their name even though they are not the ones paying for it? Seems like this would be a huge hang up to me when trying to complete deals like this.

Thanks in advance for any insight, im located in Lynchburg, VA if anyone out there in the BP community would like to share a cup of coffee or a beer sometime.