How long to hold New Jersey flip?

[Ben C.]

Hello, I am flipping single family homes (all cash deals) and am wondering if other NJ flippers can help me.... I am wondering how long you hold your flips? I know after 12 months there are tax benefits vs selling before 12 months (profit taxed at long term capital gains rates). So if your rehab is done in 4-6 months do you hold on and not close until after 12 months? How do you calculate if it makes more sense to sell fast and pay more in taxes vs hold longer and pay more property taxes etc? Thank you!!

[Max T.]

Should be pretty easy to compare the holding costs of a finished flip to the difference between your profits after ordinary income or capital tax rate. The risk is that the market shifts during your waiting period and changes your ARV. Could end up better for you, or worse.