All Forum Posts by: Tami R.

We do not have the portfolio as most of BP members.  I work full time in a career outside of real estate.  We have between 55-60 homes.  I swear the longer I am in it the more I hear, "why don't you cash my check immediately after you get it, you mess up my checking account when you wait a week."

1.  I used to love going to the bank and doing that deposit but with 50+ rentals and 100's of storage units I would be running to the bank non-stop.  

2.  Call me old school but if I cash your $700 check today or the $700 check next week - you still need to know you have $700 less in your account :)

Over 50 rentals.  B average. 2 yrs.

here's what happens when.i try to clean carpet the smell usually (not always) comes back.  I would never spend $4k on cleaning the flooring.

The 9% interest rate was high when I briefly looked.over the analysis

I agree with Marc M

Clive Iowa looking to invest in area.

I have about 80 properties.

I have considered flipping a couple new buys.  

I have always heard capital gains is terrible, etc... but I have a business partner in another venture and he says when you pay taxes it's meaning you are making money.

The other thing is my ordinary tax is at 37% (fed/state of Iowa) and capital gains is at 24% so wouldn't I rather hold the property for 366 days and pay capital gains?

Ya - I thought you have mentioned that before when the dwelling was always intended to SELL but I thought it was different with rentals.

So when does capital gains come in to play?

I have two questions...

I read somewhere that you pay taxes when you do a flip but not Capital Gains tax if your intention was to flip... can someone explain?  
Here's somethings we are looking at.... we have held a house for 1+ years and have slowly remodeled it - never thought we were going to rent always have been intention to flip... so when we flip (we do have a corporation 99% of our business has been rentals) what do we look at for taxes etc...

Here's an example of what we are looking at:

Purchased house for $10k

Put $40k into house

Sell house for $90k with a realtor of 6% commission

We are in south/central Iowa.

Another thing... we have another example:
1.  We have a house that has been rented for 5 years.
Bought for $30k put $10k into it and want to sell for $60k realtor 6% commission.
Is the tax different from selling a rental compared to selling a house that was going to be a flip.

I am looking at doing more flips but I am trying to figure out how I would get paid, capital gains, etc... 

I had a similar situation.  The house was not livable condition and was unsafe.  I had the City Inspector come and basically gave them 1 week to get out because they "white tagged" the property meaning it was not livable... it was easier than any other ideas I had but I agree every town and state has different laws.