All Forum Posts by: Wilson Churchill

This is easy.. Did either one of you receive Form 1099-S? If you both owned the house equally, you each would report the sale under "business income" on Schedule C, since you are in the business of flipping houses. Your half of the costs is your inventory "purchases", and you report your half of the sale amount as the receipts. Beginning and ending inventory will be zero if the purchase and sale happened during the same year.

If you want a balance sheet and a P&L, then QuickBooks is good. If you just want totals, then Excel is fast.

I would do it. I used the equity in my home to buy three additional properties. You can then refinance the rentals that you purchase. after a year or two.

If you sell the house that you purchase and fix within a year, the gain is ordinary income. If you sell the rental and purchase another rental (or other like-kind property) with the proceeds, you will defer the entire gain. So, yes, it would be beneficial to sell the rental if your goal is to use the proceeds to buy another.

High rent to price ratio

High demand for rentals

Low property taxes

Vacant homes aren't robbed or vandalized

I would say go for it, but only after you have solid income from your investments that is MORE than your normal job, as well as a huge cash reserve.. Keep your job until you have the personal property that you want (house, car, etc.) and your investments are self-sustaining.

I recommend hiring a private investigator to locate their bank accounts and other assets. 

 In situations where there are multiple full-price offers on a property during the first day, why would they select my offer over any other, assuming my offer isn't any higher? $$$

I wouldn't argue that it is "always" best to contact the listing agent directly. Doing so benefits my business plan, since I make offers on MLS properties that are often sold on the first day of the listing. Contacting the listing agent has enabled me to win out over the other offers on more than one deal, since they have an incentive to accept the offer, getting additional commission.

It depends on what your long-term goals are. If you are wanting to continue to buy more properties, you will get a better rate of return by using the increase in cash flow to buy additional properties. If you aren't planning to buy more properties then just leave the current mortgage in place.