All Forum Posts by: Eric DeVito

@David Krulac That is an old photo David but house looks the same. I did remove some bushes that were dead. I to have put new ones in because I let another pair die cause I got lazy watering them lol. As far as the fence goes, I was thinking of switching to vinyl. Yes a lot of homes have that in area. Idk if it is worth doing right now or it can wait. It would make the home look nicer from street view.

@Ralph R. I was just throwing out rough numbers but my last statement I read said I still have around 190,000 left to payoff.

As the subject states, I am just trying to figure out which funding is the better way to go. Looking to get equity from my current residence to acquire another property. I want to rent the home I am in now and the possibly use the VA Loan again on the next property (possibly a 2 family home).

@Aaron Abraham Thanks for clearing that up. I fully understand now. 

@Dave Foster sounds like a headache due to all he money flippers have to payback in taxes but like you said if you are making a lot of deals then are profiting I guess as a flipper it workout fine as long as money is going in your pocket.

@David Krulac Yes I suppose taxes is part of the game. If your still making a good amount of profit it is worth it then. In my case I don't mind waiting to avoid the tax and pocket the extra money. Either that or I'll just rent and hold the property. Thanks for all the great information. 

Now just have to worry about the 2nd propoerty that I will want to acquire if I decide to take out a Helco or do the VA refinance

@David Krulac Right. Still 20% out of a net profit can be a lot of money, example my situation if I sold the house now.  I would be losing like 50,000 to capital gains. Wish the rule lasted longer then 5 years lol. 

If flippers get hit so hard then why flip? I guess it depends on how great of a deal you get on the house your going to flip or you make such a large profit that the flipper does not care about being taxed.

@David Krulac Understood. So I assume many ppl get hit with capital gains tax. People who have to relocate for a job or a family who just feels like moving to a different state and just wants to sell the house. I would assume not many people know about the living in the residence for 2 years out of 5 either. 

Also how does flipping get involved in this. Flippers have to flip and sell quick as possible I imagine so how do they avoid taxes? Just curious. 

@David Krulac Great information, thanks. Either I am going to stick it out and wait for the 2 years to be up or I'm going to use the equity I have to get a HELOC or refinance and get another property. I can then keep this current home as a rental.

      If I do decide to rent out my home before the 24 month period and just say I keep it as a long term rental passed the 5 year mark I would still get hit with capital gains tax if I did decide to sell say in 8-10 years. Correct?

Right now my mortgage is $1250 a month and my RE agent says I would be able to rent the house between $2500-$2800 a month. I don't mind keeping it as a long term rental if I will be getting that type of return.

@Michael Bertsch Everything is stopped. We're just discussing another option of possibly me just keeping the house and renting it out. Realtor states my home can rent from $2500-$2800. While my mortgage payment is $1250 a month. Also then take out a Helco or refinance to get another property using equity.