All Forum Posts by: Jon Smorol

How do I go about doing this in the state of KY?  My CPA suggested it so that it would be easier to split tax implications between my partner and I on a home were are flipping.  Obviously my first go at this, online there is talk say a Quit Warranty Deed form and filing it at the county recorder's office is all it take?

Update

Put the house under contract last night for 81,500. 10k rehab costs after my contractor went through it. We have potentially lined up a tenant, a coworker, will cashflow 200-250/mo. 4 week reno timeline gets the renters in by april following our 3/2/15 closing date.

I appreciate the tax advice, a bird in the hand....

I'm looking at a property that is owned by an out of state couple, it was a rental that has just been abused recently. Great neighborhood, easily the worst house on a nice street. Needs all new flooring, a easy layout change (knocking out a wall in a tiny 8x8 bed room to covert it into an office, and turning a large bonus room into the 3rd bedroom). 3 bed 2 bath with an ARV of 130,000. Estimate from the contractor isn't in yet, but should be able to get everything done for 10-12k.

Asking price $95,000

Reno 10-12,000

ARV $130,000. Should sell easily in this neighborhood.

Conventional Loan- 5% down, can do more but prefer least amt possible

If I offer around 80,000 I can be allin for 90-95k, roughly 70% ARV

Looks like a decent fix and flip, but I worry about tax implication, and it may be better to rent for one year til we can hit long term capital gains. Not sure on best tax strategy.

 Any advice?

Jon

i spent n i ne moths looking through the foreclosure and distressed market til i found my current property. 33% equity upon closing, and rents are 50% more than my mortgage currently. So im extremely pleased with my first deal, but finding a second has been a little m or e diffcult

Recently bought my first property, a foreclosure, and have fixed it up and currently am renting it. Looking to add more properties, just trying to edu myself on how to fund future purchases, identify the best potential properties, and improve overall RE knowledge