Problems vs. Profitability: A Guide to Flipping Houses

**shagwalla** · 09-03-2007, 10:24 AM

Like so many people who dream of securing a good income in the real estate business, I got my feet wet (actually, almost drown.) in the house flipping business. I was inexperienced and more than likely made all the mistakes that could have been made.

In early 2006 my sister Sarah, who was a new real estate agent at the time, convinced me to buy an old 1930

**IggysListing** · 09-06-2007, 01:31 PM

Great story and congrats.
I have experienced a lot of the same trials.
One thing that I learned is it is not just location but just as
important is timing. Catching a neighborhood at the right time
on an upswing (and definitely not a downswing is crucial).
Of course if you can find a house is a desirable neighborhood
and it needs paint, repairs and updating, if the price is right,
you have a winner.
Best wishes.

**professional-lists** · 09-08-2007, 01:26 PM

Wow GREAT story! This is a risky business, no doubt good thing you are watching risk v. reward.

Regards
Tom Ryan

**rob22911** · 09-13-2007, 07:26 AM

Great story! It can be tricky, but nothing great comes without risk...

**kbadeo** · 09-14-2007, 07:15 AM

As many of you may be aware, there has been a lot of negative press recently about

**power broker** · 09-19-2007, 10:44 AM

Great story!! In this business it takes calculated step and there's still trials and tribulations, not to mention headaches, But that's the nature of this business. Headaches and a vision equal profits.

**dbar** · 09-21-2007, 12:30 PM

Are a lot of people still flipping homes in the current market? Seems to me it would be very difficult to do in the current market unless you get the home really cheap. For you experts out there, what about taxes? If you hold it less then one year isn't it taxed at the higher regular income amounts?

**Hannigan** · 09-21-2007, 01:19 PM

Originally Posted by dbar

Are a lot of people still flipping homes in the current market? Seems to me it would be very difficult to do in the current market unless you get the home really cheap. For you experts out there, what about taxes? If you hold it less then one year isn't it taxed at the higher regular income amounts?

Yes, I think <1 yr flip profit is taxed as short term capital gain. Unlike a personal residence, at least you can write it off other income/gains if you lose money.