All Forum Posts by: Chris Arce

We closed our first flip, should have the title by Tuesday and I want to begin rehabbing the property immediately. I want to pull the permits as soon as i get the title, but unsure of all the permits i need for a full rehab (excluding roof). Also, there will be no structural changes.

On the website, they list these permits, i'm assuming I need Electrical/Plumbing/Demolition, but not sure if i need any other ones?  Any advice is appreciated, thanks!

1. Building
2. Electrical
3. Plumbing
4. Mechanical
5. Septic System
6. Manufactured Home
7. Demolition
8. Blasting
9. First Time Homebuyer
10. Floodplain Development
11. Sign
12. Sprinkler
13. Swimmming Pool
14. Contractor Signature Form

@Dave Foster

Thanks, Dave. I did not know this.

Grateful to have a resourceful community like BP.

@Winston Brown

Thanks Winston.

We’re not looking to file as an S Corp, since we don’t expect to flip a high volume of deals this first year.

@Daniel Hyman

Just checked it, and it says 1065.

@Daniel Hyman

You bring up a great point.

Forgive my ignorance, but wouldn't I be filing as an individual? We opened an LLC and it's just my friend and I.

I was under the assumption we would split the profits at the end of the year and just file regularly.

Regarding contractors, I know the basics like needing a W9 from the contractor before each bid.

Thanks again, Daniel!

@Daniel Hyman

Thanks for the advice, Daniel!

I’ll be in charge of the bookkeeping using Wave accounting software.

We’re 50/50 partners and opened a business checking account as well as a credit card account.

Any other steps you would recommend? If we just flip one house this year is it worth hiring a CPA?

@Alyssa Dyer

Thank you, Alyssa!

I most certainly will.

@Samuel Pentowski

Hey Samuel!

This is definitely something we are going to consider depending how much we sell the house for. Not to mention the insane taxes we will pay, roughly 37.5% on the net profit.

Also thinking about a 1031 exchange to defer the taxes. Basically not ruling anything out, we will see how the rehab goes, crunch the numbers, and then make a final decision.

Thanks for the reply!

@David M.

Thanks for the detailed response David! You answered all my questions.

@Sandy Gabin

Thanks, Sandy! Construction hasn’t stopped, how come you haven’t been able to work on them?