Considering Living In My Fixer Upper
I am about to do my first rehab, but with the high rate and fees associated with hard money, I am considering moving into the fixer for a number of reasons, mainly I can get a better loan as an owner-occupant, with much better terms. But also I beleive there are other advantages if I was there for say, a year. Like more time to rehab, build a little more equity, tax advantages and no seasoning issues when I do sell later. Am I correct in these assumptions? Am I missing anything? If anyone can elaborate on tax advantages and seasoning advantages, I would greatly appreciate it.
Thanks.
If you live there for 2 years (double check) you never have to pay capital gains on the money that it makes as it appreciates, or is fixed up...I've done it. You could move every 2 years, fixing up and building equity, making $$. IF that's what you plan on doing for a living, now that's another story. How much can you stand? ALWAYS living in the mess. you get to a point were you just want to get away from your "project". BUT if you live there you basically come home to your problems every night. I'd try it once. almost anything's worth trying once. I've done it once...now I just want a nice place to come home to with no problems...
Just my 2 cents.
Sam