Buying a fixer upper

[Donell Sousa]

I'm thinking about buying a fixer up since I can get a good deal and pay cash. My dilemma is this, if i buy the property cash i won't have the money right away to fix it up.  Can I sit on the property and take my time fixing it up? is there any financial drawback in doing so(other than of course not being able to rent it right away) or is there a tax benefit to me taking my time and writing off the repair cost?

[Neil Henderson]

Are you contemplating a live-in flip? @Mindy Jensen would be the one to talk to about those. 

If it's not an owner occupied unit I would urge caution against proceeding until you are better capitalized to handle the purchase and the rehab in short order. Unoccupied real estate is often hard to insure and can quickly attract a bad element. It might not seem like a big deal to have a property sitting vacant with no debt, but it can certainly end up taking money out of your pocket.