All Forum Posts by: John Nisewonger

That's what I am thinking too on the labor.  But what about materials?  I doubt the irs will accept a print out of the ad on craigslist.  Prob just have to eat that too Im thinking.  Wasn't sure if I was missing a trick of the trade somewhere ya know to help ease the impact from uncle sam haha

Getting ready to close on a house I plan on rehabbing/flipping.  I am finding a lot of materials and appliances for sale on craigslist that are waaaayyyy cheaper than buying from lower, HD etc.  I also found a group of guys that I used to work with in construction that are willing to help but wanted cash as payment.  I'm talking like $16-18 an hour for guys I trust compared to $30-35 an hour for general contractors that I am pulling out of the phone book.

When I go to pay my chunk of tax on my profit, can I write off these things I paid cash for?  It still might be beneficial to pay the cash prices since the savings is so great but would be even better if I can write that off.

Your thoughts and experiences??  Thanks guys/gals

@ryan cameron it is a real estate auction site 

this will be a flip. I will not occupy the property. I have maybe $6k left I can borrow from my 401k as I currently have a loan out from it that funded another deal. Total renovation cost will be around $20-25k. House is $38k and I think it will sell for around $110-115k.

this will be a flip. I will not occupy the property. I have maybe $6k left I can borrow from my 401k as I currently have a loan out from it that funded another deal. Total renovation cost will be around $20-25k. House is $38k and I think it will sell for around $110-115k.

*creative financing........sorry I'm typing on my phone! :)

so I found a property on hubzu that I am interested in purchasing. The house is at a great price and I want to make an offer.

I have enough liquid assets to purchase the house and maybe enough for a third of what I think it will cost to renovate.

The hubzu deal is cash only.  I dont mind using some of my cash but i dont want it all tied up in this property. My question is. Can I buy the house with cash to seal yh deal and quickly turn around and get a 203k loan to pay for the house and repairs? What other options do I have or tricks of the trade to use to pay for this house and reno?

The house will not qualify for conventional loan for sure. I heard something about cash out refi?

Any tips are much appreciated!!!

Ok thanks Russell.  I want to say there was something about a 5 year mark as well that puts the capital gains tax even lower???  Maybe that was for stocks Im not sure.

I think I will stick with my plan on rent with option to buy after 1 year.  I just wanted to double check about that 2 year mark.

I am a buy and hold investor.  I recently just put another contract on a property with a very nice chunk of equity in it.  Although I was initially just looking for a rental, I think I may want to sell this one in the near future to cash in and maybe use the profits to buy more investment homes.

I got a conventional loan on this property. My question is how can I benefit the most from this deal.  My initial thoughts were to rent the property out with option to buy after a year period.  Hopefully I would find a renter that was interested in purchasing the property.

I have read a lot about a 2 year rule to avoid capital gains.  Is that for investment properties as well?  Everything I read was about your primary residence.

Maybe I should do a 2 year lease with option to buy then?

Just seeing if anyone else has experienced anything like I am.  Thanks for the replies you all always seem to come through!  I am in Virginia if that matters.

@Keitron Brooks go to meetup.com and type in real estate investing club. There are a few in Richmond.  I, however, have never met up with any of them as I am a good ways away but I have heard a lot of good things.  Best of luck