All Forum Posts by: Armando Martinez

@Natalie Kolodij Thanks for the response! Sorry for my confusing context. My intent is to purchase a long term investment property (rental) and not a flip. 

@Dave Foster My primary intent is not to resell the duplex. I want to buy and hold but live on one side before renting out both sides after a couple of years. Or were you referring to the original 'flip' property?

I purchased a flip in September of last year for 69k and put about 20k into it (all cash). I am currently in contract to sell for 115k and looking at a profit of about 25k. I was hoping to 1031 Exchange into a Duplex/Townhome, live on one side and rent the other. I've seen mixed results about this but it seems like this is possible. The Duplex/Townhome price would more than likely be at the 300k mark or above.

I have also read that the entire amount of the gains needs to be invested in to the other investment property if doing a 1031 exchange. I just want to confirm that it would only be the 25k of profit needing to be rolled over to the other investment property?

@Dave Foster Going off of your most recent response to Joseph Clemmons, you are able to use a 1031 exchange to buy a MF residence and Owner Occupy? 

I purchased a flip in September of last year for 69k and put about 20k into it (all cash). I am currently in contract to sell for 115k and looking at a profit of about 25k. I was hoping to 1031 into a Duplex, live on one side and rent the other. I've seen mixed results but with your response above, it seems like this is possible. The duplex price would more than likely be around or above the 300k mark. 

I have also read that the entire amount of the gains needs to be invested in to the other property if doing a 1031 exchange. I just want to confirm that it would only be the 25k of profit needing to be rolled over to the other investment property? 

Hey Nicholas, 

I am a first time flipper currently working on a flip. My question may be a rookie question but I am not sure if it is actually how it works. I have owned the home since October of last year. I am assuming all of the expenses, mileage etc. that occurred since the purchase in October through December 31st are to be included in my 2017 tax return, correct? 

Since this is my first flip, are there any accounting tips/recommendations I should know about? I spoke to a CPA locally and he just said to keep all my receipts and note mileage for my vehicle. Any other info would be greatly appreciated. 

Thanks in advance!