Pros and Cons: Flipping Houses via the Live-in Flip

Flipping houses requires an investor to find a great deal, fix it up, and then have a resale value higher than the original price plus repair costs.

Lower Mortgage Interest Rates and Down Payment Lower down payments don’t mean you shouldn’t have plenty of money saved up to finance the house flip.

Pros of Flipping Houses Via the Live-in Flip

No Income Tax Due When You Sell

You would be exempt from paying any taxes on the increased price compared to the purchase price.

For example, let’s say you bought a house for $150,000, put in $50,000 in repairs, and then sold for $300,000.

Flipping houses via a live-in flip is the focus of this post, but that doesn’t mean it has to be your only exit strategy.

Multiple Exit Strategies

You May Have to Move Often Moving often also comes with additional costs.

Cons of Flipping Houses Via the Live-in Flip

Even if your plan going into a live-in flip is to sell after two years, you should have a backup plan in case the housing market tanks.

The Housing Market Could Tank

For example, people who purchased live-in flips in 2006 or 2007 may have ended up getting stuck with their home for much longer than expected.

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