Typically, there are two options when taking the real estate investor path: flipping houses or buy-and-hold rentals.
Everyone needs a place to live. Someone who becomes a homeowner instead of a renter technically also becomes a real estate investor.
Even if you don’t plan to turn flipping houses or live-in flips into a full-time business, there can still be benefits of a live-in flip over the long haul
Whether you decide to move every few years or live there for ten years before upgrading to your dream home, these are the pros and cons.
Federal Housing Administration (FHA) loans allow a homebuyer to purchase a home with as low as a 3.5% down payment.
Lower Mortgage Interest Rates and Down Payment
Not paying capital gains tax when you’re ready to sell your home may be the most significant advantage of flipping houses via the live-in flip.
Section 121 of the tax code says that if you live in a property for two of the last five years before selling your home,
You would be exempt from paying any taxes on the increased price compared to the purchase price.
I know that many people hire out the work to flip a house, but if you’re somewhat handy, there’s plenty of sweat equity work you can do yourself.