Thoughts On Deal
I have found a house appraised for 39000 and selling for 20000. I want to buy it and then flip to an investor or buyer, what should I make sure I have in the contract to do this in a short time period and what are the tax implications?
I promised that I wouldn't give any more tax advice, but I BELIEVE that if you are an individual (Not a business entity) you are required to claim your profits from the sale of this type of real estate transaction as income on your W-2 and pay taxes on it as would be appropriate.
With regardsto the deal, the information you provided is really vague. Is the appraisal as-is, or after its fixed? Does it need repairs? If so, how much would they cost? After they are complete, what should the house be worth? etc.
If the house is in good shape, and in a neighborhood that people aren't afraid to live in, what would it rent for?
This looks potentially like a good deal, only limited by the small numbers. I suppose that could be considered a positive also, depending on your point of view.
Good Luck,
Jeff[ Edited by jeff12002 on Date 01/21/2004 ]