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Buying a "fixer upper" house to: flip, rent etc
We have talked about it for years. Many. We finally are doing something about it. A house about an 1/8 mile from me. The man passed away and his family put a homemade for sale sign in the window. We met the lady there, made an offer, she accepted, we have the equity loan approval for our house. Now it's a matter of signing papers and getting the tools out. It need ALOT of work. But it's a 1000sq ft house on a 1/4 acre for $35k. My daughter who will be 18 in June and 2 of her friends are going to rent it fo a while, then she'll either buy it from us, or we'll sale it when the market comes back and hopefully make a nice profit on it. It's pretty exciting actually to finally be doing something. 2 col things. The loan on the little house, $300/mo, should be able to rent it for $600, and, we're paying cash for it so there is no lien on it. if everything else falls apart, we'll own the title for it and can't loose it since there really is no loan on it and no ties to any loans.
Anyone else rent, flip etc?
I heard there are tax advantages to owning a rental, I have no idea what they are yet.
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