Rehabs And Taxes
How do you rehabbers make money on your properties for the most part? Rehabbing and selling or rehabbing and renting? With the capital gains taxes levied on a sale do you still end up with substantial enough profit to just work them as fix and sell?
Also what are the flipping rules for HUD properties?
Thanks in advance (This is a great site)
I'm still learning the ropes as well but I'm currently rehabbing my first property and the potential for profit is amazing!! I paid 130k for a single fam. rancher on 1 1/2 acres just 6 wks. ago. It was cosmetically a disaster and had previous water damage but fixable. Its now looking good w/just some minor jobs left and its already worth 100k more then I paid!!!!!!!!! I'm going to rent it for now just because I know how the market in this area is and properties go up and average of 20k per yr minimum....my own home went up 60k this year. Jump in and take the risk, you'll be glad you did!