All Forum Posts by: Jeffrey Hayes

Hi, I'm a real estate broker/investor in Tucson, AZ and I have been flipping houses for several years now. I am just about to be a licensed broker up in Colorado and I will be doing flips up there also. As of right now I'm flipping houses with a family member who is also a broker but we are buying the houses in our own names and not our business and being taxed as sole proprietors. Following is my new plan to save on taxes. We will both form a new LLC in Colorado and buy our flip houses in my name or her name. We will then elect to be taxed as an S Corporation(We will be the only 2 members in our new Colorado LLC) and we will pay ourselves whatever we deem to be a reasonable salary(I've heard it should be at least half of our income) and pay our S Corp dividends so that we can save on self employment taxes. My questions are as follows: Do we have to elect to be taxed as an S Corporation by a certain time of the year? How long do we have in the year to decide how much to pay ourselves(reasonable salary). Do we have to pay ourselves the same salary or can we divide the salary unevenly depending on what is best for our individual tax situations and or how our work for the year was actually divided up? Also would it be a good idea to have our LLC be the owner of each newly aquired flip home that we purchase or should we be keeping the flip homes in one of our own names? Would there be any good reason to just form an S corporation or is it best to have an LLC taxed as an S corporation. To help me get these questions answered I am projecting a gross income of approximately $125,000 this year from flips. Any advise would be great. Thanks

Hi, I'm a real estate broker/investor in Tucson, AZ and I have been flipping houses for several years now. I am just about to be a licensed broker up in Colorado and I will be doing flips up there also. As of right now I'm flipping houses with a family member who is also a broker but we are buying the houses in our own names and not our business and being taxed as sole proprietors. Following is my new plan to save on taxes. We will both form a new LLC in Colorado and buy our flip houses in my name or her name. We will then elect to be taxed as an S Corporation(We will be the only 2 members in our new Colorado LLC) and we will pay ourselves whatever we deem to be a reasonable salary(I've heard it should be at least half of our income) and pay our S Corp dividends so that we can save on self employment taxes. My questions are as follows: Do we have to elect to be taxed as an S Corporation by a certain time of the year? How long do we have in the year to decide how much to pay ourselves(reasonable salary). Do we have to pay ourselves the same salary or can we divide the salary unevenly depending on what is best for our individual tax situations and or how our work for the year was actually divided up? Also would it be a good idea to have our LLC be the owner of each newly aquired flip home that we purchase or should we be keeping the flip homes in one of our own names? Would there be any good reason to just form an S corporation or is it best to have an LLC taxed as an S corporation. To help me get these questions answered I am projecting a gross income of approximately $125,000 this year from flips. Any advise would be great. Thanks

@Colin Mooney.  Thanks everyone for the advice.  As a sidenote I have been to Florida on vacation and for work quite a few times over the years ranging from as far as Key West, Miami, Fort Lauderdale, Orlando and Daytona Beach. Tampa looks like a perfect fit for me right now but for some reason everything I read online says Tampa has a high crime rate?  I don't believe everything that's out there and Tucson, AZ also is said to have a high crime rate but I think Tucson is a great place to live and I have lived here for over 30 years.  It seems like most of the crime here is related to drugs and gangs here.  But the part of Tucson I live in is very nice.  Is it the same deal with the Tampa Bay area? I will be doing flips in the median price range or higher in the Tampa Bay area and don't want to always worry about my houses being broken into.  Your opinion would be great. 

Hi, I'm a broker in Tucson, AZ and I currently flip houses in Tucson, AZ. I will be getting my real estate license in the next few months in Florida and I was just wondering if anyone out there has any ideas as to what the best markets are for flipping house in Florida. My before renovated top end to purchase SFR purchase price will probably be somewhere in the $140,000-$175,000 range. I will be living in an RV initially until I find a great place in Florida to flip homes so I am open to suggestions and can do it from anywhere from the Florida panhandle to the keys. Any suggestions would be appreciated. Thanks

Thanks to everyone who shed some light on this topic!  I appreciate it.  

@Norberto and John Agnoletti,   as somewhat of a side note,  do you know of anyone that has any success in flips in Pueblo, Co?    I know that city is much smaller, but I do know that the median price of a home is somewhat lower there than CS and Denver.   

Hello everyone, I'm currently flipping homes in Tucson, AZ, however, I will be getting my license up in Colorado shortly. Any quick advice as far as what market may be easier/more profitable as far as buying distressed properties for flips. I've narrowed my flip area down to either Colorado Springs or Denver area. I would be happy to live in either city as I have spent some time in both before. My max price for buying SFR would be somewhere around $190,000 before repairs are done. Any general advice as far as inventory, and which city might be easier to break into the flip business up there would be appreciated.

LOOKING FOR EXPERIENCED HANDYMAN TO DO VARIOUS TASKS NOT LIMITED TO BUT INCLUDING INSTALL NEW TOILETS, BATHROOM VANITIES,SOME SHEETROCK WORK,INSTALL TUB TILE SURROUNDS,INSTALL CEILING FANS,INSTALL VANITY LIGHTS AND OTHER MISCELLANEOUS TASKS. 

Hi Michael,  I flip homes in Tucson, AZ. I went to a seminar up in Phoenix and  B.E. Lending was represented there.  I've never used them but you might want to check it out.  I think they go as low as 12% if you meet their criteria.  Her name is Karen Causseaux .  I've never personally used her though.  But they were at a flip workshop I attended up there years ago.  Hope this helps.  Jeff

Hello everyone,  I'm having a condo built in the Cancun area in Mexico and it will be done by April 2017.  I'm meeting with the builder this month to choose my finishes.  I really like the way polished porcelain tile looks. Does anyone out there have any idea how durable this is?  I don't want it to be damaged by renters. I also heard that it is somewhat slippery. My other question is how durable is Quartz.  I've used it before in flips but never in vacation rentals.  I talked to someone who told me that it is not very sturdy when it comes to heat and hot things being placed on it.  I might just go with tile countertops because I do want a hacienda look as this is what the entire theme of the condo complex is.  Anyone with real world experience with Quartz countertops who can attest to their durability or lack thereof would be great.  Thanks,  Jeff