I am making more buying and holding. No or little remodel costs. Let the tenants pay for costs and a 6% return plus getting 10-25% annual appreciation in South Lake Tahoe. No income taxes or commissions. Repairs handled with home warranty. Biggest costs flooring and paint, handled with cash flow. Refi or 1031 to enjoy appreciation.
Home was not in move in condition, took appx 25k to make it move in, then rented for an year. The home had 40 trees, took appx $4000 to bring it down everything…etc.
My holding cost is less as I rented the home.
Held 12 months, for long term capital gain purpose, then I decided to sell.
Spent another 25k that includes painting, cleaning, removing carpet, staging etc to sell.
Long term gain is smart. Normally the faster the flip the better. But since there is a shortage of flips, holding makes sense. Enjoy appreciation and less tax.
I flipped only one home, not a flipper by profession, not even a realtor. I bought a home with 10k lot, mainly to tear down and build a single story home. Tried construction loan and other sources to build it, failed to get loans as I am not a builder. Finally fed up and sold it.
The home was bought by a realtor+builder and he is building (my dream home) 4400 sqft single story home. He has the money to make it and he will list it appx 2.8 M to 3 M.
I always wanted to build, but for now i better buy & hold.
I would build craftsman or if too big of a house, probably colonial. They both stand the test of time big time.
First timers, It is better to buy a home as building a home needs extra free time, effort and excess cash. It has lot of challenges with county/city and neighbors.
Yeah, my first time is regular buy But there’s a builder inside me, i think. But priorities - currently, buying first house and finishing side project.