Purchase house through S Corp. and live in property?

Question

Not to beat a dead horse but I’ve had some replies to my former discussion, which indicates to me that in my quest to find my first flip property, not counting the last two houses over the last 4 1/2 years that I have successfully turned over for a profit using 2 30-year conventional loans, I can actually purchase a property using my S Corp.

The only problem is, I would need to live in the property that I am fixing up, as I currently do not have a permanent home-base. I understand that Dodd-Frank comes into play As far as me not being able to live in the house. Does buying it through my corporate entity absolve me from that? Or am I just trying to be sneaky? A whole lot of money is not being made by my particular situation. And I need at least one more successful house “flip”, if you will, to allow me to purchase a cheap $15,000 apartment somewhere in foreclosure so that I can use that as my legal homebase and therefore qualify for Hardmoney or private money loans to do what I want to do.

A whole lot of money is not being made by my particular situation. And I need at least one more successful house “flip“, if you will, to allow me to purchase a cheap $15,000 apartment somewhere in foreclosure so that I can use that as my legal homebase and therefore qualify for Hardmoney or private money loan to do what I want to do.

Again, any comments or advice would be greatly appreciated

Ray

Miami Beach Florida

Ray Egan · Answer

My apologies. Am I the only one who’s email seems to be repeating itself every paragraph? I’ll try not to let that happen again

Ray Egan · Answer

Thanks for the response. I am aware of the tax benefits however like I may have mentioned, my next step in my investment adventure is to fix a house up and sell it in less than a year. all the time occupying it as I do not have another property to live in. That is the problem. Dodd-Frank says no to Hardmoney and private Money lenders. I would have to have another property to live in, and then that would be no problem. Perhaps after this next house I buy I will be able to afford to buy a small apartment and have that as my primary residence so hard money loans would not then be a problem. That’s the hurdle.

I would have to have another property to live in, and that would be no problem. Perhaps after this next house I buy I will be able to afford to buy a small apartment and have that as my primary residence so hard money loans would not then be a problem. That’s the hurdle.

I do have a long email into an online private money and Hardmoney lender telling them my exact situation, maybe I’ll hear back from them today or tomorrow.

Ray

John Thedford · Answer

If you want to live in the house and title it in your name you get tax benefits upon sale (if occupied 2 years as your primary residence 250K if single and 500K if married) gains are tax exempt. Tax guys please chime in.

Purchase house through S Corp. and live in property?

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