Question:
“We currently live with family, which isn’t great, but oh well. My wife and I are handy and while we’re living here, we’d like to buy a little fixer-upper to resell and make some money towards buying a bigger house down the line. Where do we start?”
Answer:
Keep in mind that buying fix and flip properties is highly competitive. You’ll be competing with investment groups that can buy all cash and make repairs much more cost efficiently than the average person.
That being said, here’s an idea…tell me if it makes sense for you:
- Buy a fixer condo and move into it
- This gets you out of living with family, which you said you don’t enjoy
- This allows you to get an owner-occupied mortgage at a lower rate and lower down payment
- You’re also living there, so you’re not paying a mortgage on an empty property
- Remodel while you live there
- Not fun for most people — that might be a reason NOT to do this
- Stay for 2 years and sell at a profit
- By owning and living in it for 2 years you can take advantage of IRS Section 121 and pay ZERO tax on your gain (confirm with your tax pro)
Either way, let’s figure out a time convenient for you so we can get together and make a game plan…
Hello, We are moving to san diego soon. My husband is in military and we decide to permanently reside to san diego. I was wondering if you can help us buy a house with our budget. we want to buy a house and maybe you guys can flip it to ur dream house our budget to both is 450K hopefully you can help us.