New investor from New Jersey.

15 Replies

Hi I’m new to REI and I’m looking for some advice. I am an Army veteran and I qualify for a VA loan. I have strong credit and a pretty good income. I am a homeowner as well. I have around 100k in equity in my house now which was the first house I bought. I am looking to sell my house and buy another fixer to live in and to buy a flip and fix house to flip. I will do all the work myself. I’m looking for a good real estate agent and a mentor in my local south jersey Philadelphia area.

@Jordan Lewis go Army! Welcome to the site. Be aware there may be changes coming up to the taxation of primary residence sales, make sure to talk to a CPA specializing in real estate when you sell your home.

When are these changes coming?

Hi Jordon and welcome to BP!

How Can I contact you Tom if I needed to ask a few questions.

I just researched it a bit. It seems to say you have to live in the residence 5 years. I’ve been in my home for 6. So I hope I wouldn’t be affected this time.

Hi Jordan,

You are correct.  Both the House and Senate tax reform proposals would change the holding period requirement for the Section 121 capital gain exclusion on the sale  of a primary residence from 2 out of the past 5 years to 5 out of the past 8 years.  It also limits how often you can claim this exclusion to once every 5 years (instead of 2).

However, it is politics so who knows if the tax reform bill will become law.

On a side note. I am looking at a property that I found out will be in an online auction. What is the process of acquiring a home like that if I do not want to deplete all of my funds by buying it cash?

Hi @Jordan Lewis and welcome to BP. As far as funding a purchase in an online auction, you can look into hard money or private money. This would allow you to purchase the property and not deplete all your cash. Just be careful, hard money is expensive so do your research and see if it will work for you. Generally speaking though hard money isn't something I would recommend for a live in flip. If you can fix the place up and sell it quickly maybe it'll work. 

Anyway, hope this helps and good luck on your REI journey.

Hey Jordan! Welcome to BP, it’s nice to see another Jersey Investor. I have done 3 flips including one in Camden NJ of all places. I’m also a real estate broker if you need anything or want to meet let me know!

Thank you everyone. I will reach out to more people and make some good connections. 

Hi @Jordan Lewis ,

I'm an Agent (licensed in PA & NJ) and an investor. I'd be happy to answer any questions you may have on the process. Feel free to give me a call to discuss further.

Thanks,

Shawn

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