All Forum Posts by: Pat Ayres

@Valerie Hiscoe I will have too much money wrapped up in it. I just created my own comp with the sale of my primary residence, about a block away. We had lots of interest in our house, so we'd like to do the work and get our money back out. 

@J Scott  If my rehab starts in 2016, and I don't sell until 2017, how would that affect my deductions? All of the above is really good to know. I will have to make plenty of trips to Home Depot & those deductions will add up quick. I also just discovered I counted holding costs twice & will put an additional 10k in my pocket. I am now looking to clear $43k. Thanks for your responses everyone. I will  keep you posted on how it goes! 

@Dave Foster Any info on where my deductions fall into that?  If I have deductions based on this work that has been done, won't that taxable amount drop down?  As of now that 33k would put me in a 25% bracket. Where does 40% come from? Just trying to understand. Thanks Dave!

-pat

$33k would net out to 13.2% of ARV I think? I'm putting 27k down to buy, & 73k into it (labor, materials, holding costs, closing costs, buyers agent). Price is 144k will sell for 250+ ---- Am I giving enough details? I'm thrilled to be making 33k!!

Hey everyone at BP,

I am working on my first (non live-in Flip). As it stands now with rehab costs, holding costs, Closing costs, & paying the buyers agent, I will net out at $33,000. Since I am not flipping as an LLC, I will declare the income & add in all my deductions, in addition to my w2 income, should I expect to pay much on that $33,000? Also, with this being my first flip, is a spread of $33,000 pretty good or should I really pinch pennies and try and push closer t0 $40k? Let me what you guys think or if you have any advice. Please link any and all articles or books where I could get a better knowledge of what I am getting into! Thanks! - pat