Updated almost 5 years ago on . Most recent reply
Selling Every 2 years - Pro's and Con's
So a colleague is absolutely killing it in RE investing. 4/5 years ago he bought a condo cash 200k, used a heloc on it to flip 1 property that year. Year 2 he flipped 3ish properties, year 3 he got an investor who gave a tonne of cash and flipped like 10, year 4 he has flipped over 15 and currently has like 12+ doors plus new construction that he is getting ready to either flip or keep for a year and then Reno and flip, plus a land project where they are building homes on
Legit the same job as me, killing it. But 1 thing he always does is sell's his primary residence every 2 years.
Can people tell me the pros and cons for this? I understand kinda the tax implication that you dont have to pay capital gains taxes on it if you lived in it for 2/5 years (and im not one to question someone killing it) But wouldnt it make more sense to keep the properties, rent out, refi out the cash and keep building the portfolio or can you make way more cash by selling taking the profit and moving to the next one without having to play landlord.
Anyone who does this your insights would be great