Our First Live-In Flip

 

Live-in flips are a great investment if you have the skill and motivation to fix them up.  One of the best things about them is you can sell them income tax free if you’ve lived in them 2 of the last 5 years. Essentially you can buy a house that needs work, fix it up while you live in it, sell it in two years, and not pay any capital gains taxes on the profit you make up to $250,000 if you’re single or $500,000 if you’re married.  Any time you can keep more money in your pocket, instead of giving it to uncle Sam, is a great day.

There are some drawbacks though.  You will need a decent amount of capital to put into the house to fix it up. You must find a house that’s a good deal, so you can turn a profit. On top of that you’ll have to deal with your house being messy most of the time, and constantly being in construction mode.  That can be hard if you have little ones crawling around.  Also, if you’re doing the work yourself it’s very time consuming, and it’s a lot of working nights and weekends.  For us it’s totally worth it, because it’s a big step in getting us toward financial independence.

We bought our house back in November 2016.  We got it for a deal because it needed a lot of work.  It turned out to be the perfect house for us because we could move right in, even though we’re planning on gutting the entire thing.  We did gut the bathroom before we moved in though, and worked on it enough so it was usable but not finished.

 

 

 

 

 

We took a break from working on the bathroom to finish our nursery.  At this time my husband was working on our business during the day and worked 3rd shift for a W-2 job, so he didn’t have a lot of time to work on the house.  I was pregnant and was helping him with the business and worked on the house when I had the energy.  At first projects definitely took longer than we wanted them to.  We were able to finish the majority of the nursery before our beautiful baby boy was born.

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In September of 2017 my husband was able to quit his W-2 job because our business was doing well enough, and I’ve been able to stay home with our son which has been a blessing.  We get to spend more time together as a family, and we have more time to work on our house.  So far, we’ve fenced in the back yard, completed the nursery, sunroom/dining room, and almost all the bathroom.  We also updated the heating system and switched from oil to gas.  Now we’re working on our deck.  I wanted to get the deck finished before our son’s birthday party at the end of April, but the weather hasn’t been kind here in upstate NY.  Hopefully most of the deck will be finished by then. We’re planning on redoing every room, adding a front porch, and residing the exterior.  We’re going to try to have it all done by April 2019.

 

 

 

 

I will be posting about our progress along the way.  Hopefully this can motivate and inspire some of you to do your own flip, or maybe tackle some DIY projects.  If we can do this anyone can.

Next: Our Bathroom Flip

Before and after pics: Before and After Sunroom, Before And After Nursery

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