Buy, Fix And Sell....What's The Real Deal?
Rehabbers: I've been in home repair for a long time in insurance, but just started doing it myself as an invester. I have an offer in on a 3/2 now. I keep getting different stories about how long you have to keep a property after it's fixed. How long before you can sell or refinance. It's likely I will hold this particular house, but it would be great if someone could clear this quesiton up for me. Thanks.
Welcome the water is warm!
The seasoning period that people talk about is 90 days for FHA loans.
If you are going to buy fix up and sell more than a couple a year you may need to set up an entity to do it to avoid the IRS "dealer status"
Some people hold for a year and sell to avoid capital gains issues. I would sugggest a talk with your CPA to see where your at vs where you want to be at.
Right you have to season for 90 days ONLY on FHA insured loans. We sold one last week through VA that we only had for 60 days. The only thing different that we had to do is give a list of repairs that were made the the associated costs. No big deal.