I have a story for you. How I got into fixing and flipping homes.
As you know I’m not a big fan of H&G TV when it comes to real estate advice. They condense what takes 45 days into 30 minutes. Edit out the risk and edit in the excitement.
For me, I have always loved the idea of making money in real estate investing. The single biggest opportunity in fixing and flipping a home is the one you live in right now. Or the one you buy to live in.
My first flip was a home we purchased in 2006 in East Wenatchee. We lived in the house for 2 years and sold it for a $30,000 profit. Since we lived in the house as a primary we did not have to pay taxes.
You see what these shows don’t tell you about fixing and flipping is you have to pay short-term capital gains tax. This can be 20% or maybe higher.
We took our $30k and put it down on a nicer home in a nicer location. We paid full price but, it did not matter because the market is appreciating and the home had areas to improve to build equity.
We lived in that home for 3 years and made $67,000. Again we did not pay taxes.
Buyers are taught that you must find the perfect house or the dream house when shopping. That is non-sense. Buyers should look for a home they can live in comfortably, improve and sell in 2 to 6 years.
When you do this 2, 3, 4 times each time moving up to a higher price point you end up in an amazing home with a small mortgage.
Stop looking for deals. You are living in the best deal you have ever purchased. If you sell it you will make money that can be used to purchase another home. Nobody is too old to execute this strategy.
Live-In Fix and Flip Process.
Step 1 – Start fixing up your home for sale. Clean, declutter, new lighting.
Step 2 – Get your home value online CLICK HERE
Step 3 – Have our experts do a free consultation on what to do to your house prior to selling. Call 509-255-8070. We will offer low-cost solutions to maximize value.
Step 4 – Put the home on market and start looking for the next house. We have on average 2 new homes to choose from each day. There will be your next live-in flip opportunity.
Nick McLean Real Estate