All Forum Posts by: Ruth Lyons

Welcome to BP, Clayton. I always factor my expected profit in my calculations. It's like an expense. Say, for example, I need to make at least $25,000 per flip. If the numbers don't work with that profit factored in, I keep looking for better deals. As a flipper, you're taking on risk and need to be compensated for that, in addition to earning a payoff that makes it worth the time, effort and expertise you put into taking a distressed property and turning it into a home. 

And don't forget to factor in your selling costs when you flip properties...as a rough number in my area for starter homes, that's about 8% of ARV allowing for agent commissions, closing costs, potential seller help to first time homebuyer, etc. Hope this helps.

Thanks to all for taking the time to post on this topic. There's always so much to learn in this business and I appreciate all of you so much for sharing. Feeling vindicated about not signing up for Realty Trac.

Without knowing more about your situation than what you shared here, I second what's been said about keeping your current cash-flowing properties. Why sell when you have access to funds to buy in addition to? Owning property is a long term investment and it generally makes the most sense to hold longer than a few years.

Thanks for sharing. This site is an incredible asset! 

 One of the benefits of having an umbrella policy is that your insurance company will provide the lawyers to defend their stake. 

I also agree with Stephanie although be mindful that some neighborhoods in those areas are blighted and you will be hard-pressed to find quality tenants in those areas. I’m not sure what your investment strategy is, but I avoid C properties because it’s just so hard to find good tenants—and one bad tenant costs so much time, money and frustration.

Avery Strachan, Eviction Attorney

Hi Nicolas, first, thank you for offering advice. I’m a real estate agent in Maryland, and I have a client with a question. He purchased a property in 2008, and paid too much for it during the housing bubble. His daughter lived in the property for years and now he wants to sell it. He has an offer for $200,000, but he paid $250,000. Can he take a loss of $50,000 off his taxes if he sells it?

Hi Beth,

1031 is the way to go. Talk with an accountant about your specific situation, but here's what I found. The time frames seem flexible enough to accommodate most situations as long as you're actively looking.  

From the time of CLOSING on the relinquished property, the investor has 45 days to nominate potential replacement properties and a total of 180 days from closing to acquire the replacement property.

Identification requirements: The investor must identify the replacement property prior to midnight on the 45th day. The investor normally nominates three potential properties of any value, and then acquires one or more of the three within 180 days. Typically, a common address or an unambiguous description will suffice. If the investor needs to identify more than three properties, it is advisable to consult with your 1031 facilitator.

 Hi Andrew, to piggyback on Dan’s comment, what’s available in your area? Assuming you want to invest con your local area, you want to find out where the opportunities are. For example, multi family units are sparse in my area, and since I only invest close enough to home so I can actively manage my projects, I crossed that investment option off my list. Buy and hold is the most profitable strategy that aligns with my goals and exit strategy.