Ok so time to update the class it’s been a busy 4 months
None of this is tax or legal advice consult your cpa and attorneys
We bought this property, for 142,250 put a 40 renovation in it
All
In we were at 190k
Some asked why I did tha project just to make 30-40k when I don’t really need that money, and the answer was to set ip
Something bigger. I need a place to park cash to avoid taxes on it in the end of 2025, and I need that money back early in 2026 that flip was easy for me and now the new owner has an an asset he doesn’t need to worry about maintenance on and can just collet his rent.
We did New plumbing New bathroom new kitchen, new paint floor windows and ac and some framing for new doors.
It sold in February for 233k
Made 41k
My attorney waived his commission because I did all the work and he just facilitated the paperwork but after everything
We walked away with our 190k returned and 35k profit is 3 months, that 35k is now taxable so we’re going to do our best to avoid that by buying another property. This will be a long term hold.
Found a house that would be in the 500k range, down payment will be 125k using the profit for 3 other jobs I did. We wan to have minimum 25% down 40% for cash flow.
This is a long term hold I am not looking for monthly income, I am looking for long term equity. Over a minimum of 5 years holding the asset.
Offer was submitted for a house on my street
It is a 3/2 on two story’s with a low maintenance yard with the potential to be easily converted into 2 separate rentals On each story or remain as a single family rentals. One option is great for income, the other is best for stability.
There is opportunity to gain easy equity by updating the flooring bathrooms and some exterior work. But the previous owner has maintained the house impeccably as a vacation home for the last 15 years and gave me the chance to by it at asking before the open market.
After some inspection we settled on a sale price of 549,000 -15k under as I’m going to replace the ac and electrical panel and water heater.
Down payment is going to be 200k
We close on 5/1
Work will be done to secure the asset so I will
Have no maintenance issues over the next 7 years
Entering paint, freah interior plumbing connections, replace toilet, change outdated fixtures and possibly new countertops and a shower.
Adding a small kitchenette in the basement will
Then give the the opportunity to split the property into two units in a couple of years when the rent number make sense to do so.
The value of the home should be around 615k at tha point and we will have thoughts 275k in equity.
A renter will be placed at 3200 monthly,
Once done we will take out a heloc on the property and have access to the equity in liquid cash for the next 10 years over the draw period.
That helco should be for about 175k
We weill Sell this house when the market values the home at 850k Gated community on a golf course next to a lake, it’s only a matter of time.
At that point we will do a 1031 exchange of a few properties and buy a 4-8 unit apartment building.
There is going to be an opportunity to buy properties over the next 6-18 months. If you have your money right it will be a chance for you to change your life like i was luckey enough to do in 2011-2013 . Now is the time to get your credit where it needs to be, save your cash and be ready to move when you see the opportunity come. When the general public is backing out, that is when the opportunity will be there.
