All Forum Posts by: James G.

Interested in a meet up with like minded investors on Long Island.  Would be great to connect and bounce some ideas.

Welcome to BP Ryan, fellow Long Islander here.

Hey Steven, Welcome! I am from Nassau county, Grew up in Suffolk, pretty close to commack actually.

Thank you to Steven ad Bill for taking the time to respond. I appreciate your help.

Thank you for you response Steve. If i finance as much of the property as possible then there would be no way to soften the blow of the capital gains, right? If i was to put all my profit from the recent sale of my home into the next property would I still be responsible for the CG or not because it is rolled into another property? I need about 300K to renovate the next property so I would have to pull that out somewhere. Thanks again.

I have a question on how to handle capital gains on a recent flip. I currently fix and flip my primary residences. In the past I have held the property for over 2 years before I sell but this current property I have only owned for a bit over 1 year.
A quick breakdown of the numbers are as follows. Purchased for 1.16M, put aprox 250K into the property and will list at 1.7M. The house should go rather quick, I have been following the comparables quite close and a near identical home across the street has sold at my listing price very quickly without nearly the quality of the renovation. I know these numbers might be tough for many to comprehend but the area I buy in, is , and has always been in great demand. I should say I have done this 3 times before.
In addition I have an accepted offer on my next property which needs a great deal of work for 885K with an ARV in the 1.55 ?1.6M range. With a pre-engineer estimated repair cost in the 300K range.
My question is, If I clear 350K on my current home what is the best way to handle the capital gain implications? I am torn between putting down the 25% deposit on the new home and keeping the profit of the sale in the bank towards the renovation cost of the new property. Option 2 would be to put the 25% deposit plus the profit of the sale down on the new home to reduce the mortgage and then take a line out for the renovation? Or is there some kind of renovation loan available that might work better in this situation? I will mention that I will not be living in the next house until after the renovation is complete.
In an effort to not post a long winded post I might have been a bit vague on details. I am in no way a pro at this but have kind of stumbled on flipping my primary residence with a good return so far. I have yet to speak with my accountant as this next house has just recenty become a potential deal. Any opinions/suggestions would be greatly appreciated.

Welcome David from a fellow Islander. As I am sure you have already figured out, BP is a fantastic community. I suggest taking advantage of the search function as well as reading previous posts to learn all that you can before you jump in.
Looking back, when I first joined BP, it is amazing how off I was on my strategy for investing, I learned that from this site and from reading the successes and challenges of members kind enough to post their experiences. I also attended the BP summit in Denver which I found to be invaluable. I am sure I would have lost a lot of money had I not spent the time learning first and just jumping in with my original plan. I am still learning every time I log on here as I am sure many seasoned investors can say, however, I feel much better now that when a deal does come onto my radar I can act with a much more educated plan. All the best and Good Luck!

Hey Ryan, a quick search will turn up Numerous topics on the 50 % rule. The short of it is, Take your gross rent and subtract 50% towards your operating expenses, iee, vacancy, PM etc. Then with remaining 50% you subtract your debt service, the left over is your cash flow. The formula is kind of like a checks and balances to evaluate a rental property taking into account all costs in the investment to see what you potentially can cash flow. Some members like to tweek the rule for their particular area plus or minus so its just a guideline. I suggest researching it a bit, great thoughts about the 50% from members.

Hey Tony, Welcome to BP. I am also on the North Shore of Long Island.

No Josh, regardless of whether I click on the members profile or the “follow” tab, the add as colleague tab does not come up. Keep in mind that in the past I have always had the option until recent. I was under the impression that there might have been a limitation on the colleague requests under “basic pro” membership. I guess that is not the case after reading this thread.