All Forum Posts by: Craig Jeppesen

Maybe community property laws? If you buy a house or any other property before you get married it is considered separate; buy it after marriage considered community property.

Your basis is purchase price plus improvements. Being married does not change basis at all but death can. What changes is if you convert it to a rental is you have depreciation expense that is recaptured and technically lowers your basis. If she lived in the house 2 of the last 5 years she might not have capital gains or they might be lowered if she lived there less than 2 years. You only get this exclusion once every two years. Don’t forget to include selling expenses and commissions. I would bring all the details to a good CPA in your area.

Not a good idea to finance a down payment. You need equity and reserves in re investing.you could do brrrr investing to build instant equity but you still need cash to buy and rehab. If you don’t have cash you need to get a partner, heloc or private lender.

If you sell the property for $110k you will probably net $98 to $100, and if you buy it for $58 it will be more like $61 with closing costs. You will also have interest and utilities and property tax and it might take longer than you think to sell it. You will probably net $15-$18 k after interest, Utils and prop taxes. Then you have to pay income and self employment tax which will take 30-50% depending on your tax bracket. You you are doing a lot of work and taking a lot of risk for $7-$10k.

Yes brrr loans require cash to buy the property. They won’t qualify for a traditional mortgage due to the needed repairs. You buy in cash for cheap, rehab and build instant equity then get your cash back.

Lots of ways: sell a car, refinance a car, save up $30k, heloc on your personal residence, personal loan; combination of above. 

I would be more worried about appreciation/depreciation or why you can buy houses for $30k

I want my $30k to turn into $60k and then $90k. That is the real power of good buy and hold investing.

So usually you would use cash to purchase and rehab the property and then do a traditional cash out refinance after 6 months or a year to get your money back. The cash can come from a heloc on your personal residence but not the property you are buying.

To implement BRRR you need access to cash. This cash can be from you, your heloc on your personal residence, a commercial line of credit, a private lender or a hard money lender. The goal with a BRRR is to use this cash build instant equity and then get your cash back.

You must be using almost 100% of your total credit lines? Try to keep your utilization to under 50% of your limit.

Having a high DTI is a sign you might be over leveraged. I would be more worried about lowering my dti then adding more mortgages.

You will most likely not get a traditional mortgage to flip houses. Flippers use cash, helocs, private lenders or hard money lenders to buy and rehab houses. They use their profits to build seed money that lets them scale.