Seller wants the terms below:1) Price $210,0002) Down payment of 20% - $42,0003) Interest rate - 12% per year, paid monthly4) Term - 6 months, but can extend for 6 more months for fee of $2,0005) Personal Guarantee6) Owner to draft documents, run credit credit, etc.

This company was started during COVID and came as the result of a failed first ever house flip attempt that was shut down in Palm Springs cause I didn’t pull permits for moving walls and extending rooms and all that fun stuff.I’m generating 500k in revenue and the company keeps about 225k in profit and I wanna know if I can use that profit money straight from the s Corp to buy houses using the brrr method and refi them into another llc made specific for the house?

Assume your analysis is correct and you know the extend of the fixes, time to complete, and future sale price, this only works if you flip, then you want to gain control of the property so this person can't sell to anyone else.

@Jacob PereiraI I have but my county keeps extending the moratorium, although this time it expires on May 1 we expect them to line up with CDCs June 31 expiration date and slowly implement evictions slowly starting July 1, I have a feeling my tenant will live rent free the remainder of the year.

@Joe Splitrock I believe they extended the major parts though there are probably lots of devils in the details...On December 22, 2020, the President signed the Consolidated Appropriations Act.

I want to know what you guys think is a better option:1) In 2 months when the lease expires let it turn "month-to-month" status and then 2 months later start New Lease with New Rent from scratch.2) Write an Extension Amendum now for another year but specifying the first 2 extended months have same rent as before and New Rent will take effect after.

It could be a job lose, layoff, tenants not paying rent, extended vacancy, tenant damages, etc. 

The “15 years” only means an extension of the 5 year period prior to selling IF you couldn’t live there 2 of the years as primary within the 5 year original period, exercising this active military option THEN proceeding with a 1031 like- kind exchange.As for active military application - military extension of the capital gains exclusion applies for active-duty military members who are away from their property due to permanent change of station orders to extend the 60-month period up to an additional 10 years.

Don’t over extend yourself too much where people take advantage of you.

Hard money loans are basically loan sharks and unless you find an insanely good deal they will suck out your profits (also very risky if the carry cost period got extended due to a bad tenant, etc.)