buying a condo for 1 year only in chicago burbs, then selling it

[stingray]

is it ok to do? or will i end up losing money if i sell it that quick?

please let me know why or why not?

[OregonLO]

well, that all depends...

If the market took a dump and you lost value in the home then yes you would lose money.

However, if say you bought it for 100k and then you sold it for 150k you would have to pay taxes as capital gains on the profit you made since you didn't live their for 2 years. If you figure you are going to pay real estate agents 6% or $9,000 then you would net $41,000 off the property after you pay the agents and your existing loan. If you wait 2 years you won't pay taxes on any of that. I'd consult an accountant on the tax ramifications with the profit.

[TJ2007]

24 months ago I would have told you not to worry and you probably couldn't go wrong.
However given the current state of the housing market I would say you have to do your numbers VERY VERY carefully...

You have to also consider what is going to happen if you can't sell in a year - if you have too big a loan you may not be able to sell at all even at a loss. Do you have enough financial backing to continue to cover all the expenses (worst cast scenario even without a tenant) for another year beyond that or 2 or 3?

There are also many hidden costs you need to consider; besides capital gains and real estate agent fees, there are annual real estate taxes, closing costs when you buy the property, insurance and or Condiminum Association fees, unforeseen repairs or improvements to the property you may not recover etc etc.

There are probably a lot of people in this forum who have made a quick buck in real estate in the past few years, but I'm not sure now is the time to RELY on a quick flip...

YOU should make your money when you buy the property ie buy it $100k under value and then if the market drops hopefully you can at least sell without losing your shirt.
Real Estate really should be a long term investment for most people

I'm an optimist really lol

I love to sell property & do loans but there is nothing worse than seeing a past client in trouble.