All Forum Posts by: Lee Griff

thanks for the responses

I have searched the previously posted capital gain post and could not find a straight answer.

I'm inquiring upon the 2 to 5 year (long-term capital gains) window that you have to be a primary homeowner to exclude or discount capital gain tax.

- I understand that the capital gain tax is applied to the profit that you make from selling the house.

- I understand that you have to live in the property for 2 out of a five year period.

* Does this mean I would have to hold the property for at least five years? Meaning, live in it for at least 2 full years then rent it out for 3 years, or the option of living there for 5 years to exclude the capital gain tax?

*Can I buy the house, live in it for 2 years, then sell it and exclude capital gains?

Any closure to this question is greatly appreciated !

way to go! 

Thanks for the welcome. I will definitely utilize the links your provided.

Greetings BP!

I am a newly subscribed member to Bigger Pockets.  I have a new found interest in real estate investing and stumbled across BP and decided to subscribe to begin my journey. I am a licensed/certified electrical contractor/electrical inspector with the state of Louisiana and am eager to begin my new real estate investment venture. I would be happy to help with any electrical questions/concerns anyone has. 

As a newbie myself, welcome to the site. You will learn a great deal of knowledge about the RE venture on this site.. Great information, and great people. 

anyone believe this is a good idea?

or with these new 3% down conventional loans I can put 3-5 % down out of pocket vs using the total line of credit since I would be paying it off in 4 years vs 30..

If I pay the PMI insurance for 30 years based on the conventional loan calculator it would be $ 12,600

If I pay off the house in 4 years it would be$ 2235.  vs the 20% down with the line of credit plus interest totaling $1436

I understand what you mean. Yea, 30k is going to be tight.. That is the max they will give me though.. I will definitely not invest in an area where I believe it would be hard to find a buyer.. 

Worse case I was thinking getting approved for a conventional mortgage on a decent foreclosure in a decent neighborhood thats worth at least 100k but get it at foreclosure price for $45k-50k max, use my line of credit for the 20% down payment so I would not have to pay PMI and more interest for the life of the loan. That would leave me at a note on my line of credit for like $106 month, and a mortgage plus homeowners insurance and taxes for somewhere around $525 with a total note of $630 that I would pay off with extra funds I have in 4 years.. providing I will not have any pre-payment penalties to pay the mortgage off early...Make a few upgrades on the house and sell for at least $100k and go from there... what yall think???

They definitely hit the nail on the head.. Especially Holly grove. I am a native of this area, and I hate the fact that I have to go to the City of New Orleans and renew my contractors license every year... The city government there is incompetent. Not to scare anyone off, but I would be very careful dealing with the The City of New Orleans.. From what I see, most of the best deals are in the warzone area literally... 

As they stated, most of the lots, inhabitable homes,(blighted),and doubles have been sitting a very long time and no telling how many liens and title issues  are on the property..