Can I use tax-deferred exchanges on fix and flip properties?
Friday, 10 January 2020
Question: “I’m going to get into house flipping and do tax-deferred exchanges to roll my gains into the next flip and avoid paying taxes. My tax person said that will work…” Answer: I always defer to tax professionals…except when they’re DEAD WRONG! The IRS says that a property must be “held for investment or used
- Published in Q&A - Home Investing Questions
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What is the minimum down payment for an investment property?
Friday, 03 January 2020
Question: “I’m thinking of buying my first investment property. How much will I need to put down?” Answer: Almost certainly 20% or more. Anything below 20% down is virtually unheard of.
- Published in Q&A - Home Investing Questions
Does the amount of a buyer’s down payment matter?
Friday, 10 May 2019
Question: “Why should I care what a buyer puts down. I still get the same amount at closing, right?” Answer: Great question! Indeed, the buyer’s down payment doesn’t impact the amount of your check at closing. (Unless you act as bank and “carry” a first or second loan against the house, but that’s another story.)
- Published in Q&A - Home Financing Questions
Does It Matter How Much the Buyer Puts Down on Your Home?
Thursday, 08 January 2015
Question: “Since I am not carrying the loan on my house, should I care how much the buyer puts down?” Answer: Yes! All other things being equal, the higher the down payment, the stronger the borrower’s qualifications and looser the lending requirements. And a side benefit is that if the appraisal comes in low the
- Published in Q&A - Home Financing Questions, Real Estate Tips