All Forum Posts by: Sorin T

Got it Charles, thanks for clarification. But my main question remains, in a scenario similar to the one outlined above by Michael, would you recommend setting up an S-corp to pay myself wages (and other reasons), or no? What makes sense from a tax perspective, advantages and dis-?
Thanks, Sorin

Good example, Michael. My situation is very similar to yours. Even down to additional rental income. So what do the tax gurus recommend in this case? Setting up an S-corp or continue to report side earnings in Schedule E?
Thanks for your opinion in advance, tax folks
Sorin

Why not?

Thanks (I think)

Hello folks, I got my own success story!

Just thought I'd provide an update on this old thread, since this was my first flip (I do own a handful of rentals here and abroad but this was my first flip, real tangible money)

So, for the property I referred to in my Mar 17, 2011 post in this thread, purchased in August 2011. That was barely 2 months after buying my own residence which needed a ton of repairs also, you could only imagine the hoopla I went thru with family for venturing in too many directions at once. Yes, last year was quite stressful for me, but lucrative. Now the numbers:

Purchase price - 81K
Rehab costs - 9K
Carrying costs - 5K (interest, taxes, insurance, utilities)
Sale price - 145K (last week)
Closing costs - 5K

Net profit - 45K

(not to mention the buyer rented there for 2 months before closing, another 1.6K)

All this on the side, since I have a regular 9-5 job, quite demanding, and a large family which I won't ignore, no matter what.

From what I read around here, my margins aren't too bad?
Either way, I'm hooked, and psyched, already searching for my next deal. Doubt it will be that lucrative again, but nevertheless, looking for it now.

Thanks BP community for all the resources I found here that helped me accomplish this! I have a true success story to share! And hope to see some of you this week-end at the summit!

All the best,
Sorin

Ditto to Chris, above me!

Hello,
I was wondering if anyone has a vacation house available for last week of March that would like to trade for something similar, in the summer, in the mountains of CO.

What I'm looking for: at least 2br house, condo etc, somewhere warm and preferably by the water (I'm thinking FL but open to alternatives) available for Mar 24-31 (sorry I can't make the conference due to this, but I can't change my kids' summer break). Family friendly and within reasobale distance to an airport. Again, by the water would be nice to keep my kids busy and entertained.

What I can trade you for: a week into a similar size mountain cabin in the CO mountains, by Pikes Peak, 2 hrs from Denver, extremely private, minutes close to gambling town, fishing, hunting, hiking or other mountain type attractions. Any week of your choice in the summer, I'm flexible. It's my summer vacation cabin and it's pure serenity to spend time there during the 6 mo it's not snowing.

So, let me know here if you're interested, for more details.

Happy vacationing,
Sorin

Hello folks.
I'm about to sign a sale contract for my 1st flip.

I will post details after it closes but for now a question: I have the option to close at the end of December this year or begin of January. From a tax perspective what would you recommend?
To note that I'm holding the property since August.

Thanks for your advices

I think govmint should step in and regulate this unruly behaviour. ;)

As the old joke says: How can you make 1 mil in today's real estate market? Start with 2 mil...

Not sure why but this thread reminds me of the "Leave Britney ALONE!" YouTube guy.

http://www.youtube.com/watch?v=kHmvkRoEowc

Anyone else?