In my 12 years of helping people buy and sell property in this industry, I’ve only seen 2 of my clients take advantage of these important strategies involved in flipping houses so I strongly felt the need to share this information with more of you out there as it’s so easy to implement!
The general steps to successfully flipping houses are:
1. You buy property that’s a fixer-upper.
2. Renovate the property over a 2 year period while living in them.
3. And finally selling that property for a profit.
Capital Gains tax on property must be paid by someone who hasn’t lived in a property for at least 2 out of the last 5 years (generally investors). This is subject to the tax bracket you fall into, but generally a short investment like flipping houses commands roughly a 30% tax payout. If you’ve lived in the property for the last 2 out of 5 years, you can avoid a certain amount.
1. $250,000 for an individual
2. $500,000 for a married couple
Financing options are also very different if you play your cards right. As an investor, you generally need to put down around 25% as down payment. However, as a primary homeowner, you can go out there and get anything from an FHA loan to a VA loan and generally end up paying a low down payment of 5-10%
The final and good reason to invest here is that San Diego is an appreciation-driven market that goes up on average of around 5% over the last 3 years, with some areas even going up to 8-9%
- If you are thinking about buying or selling we would love to help.
- See why you should hire us on TrueLocalRealty.com
- Or give us a call at 888-503-3117