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2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

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56750889 No.56750889 [Reply] [Original]

>I just flipped my first house

I paid $38k for the house in November of last year. I paid $90k for a complete remodel (I didn’t do shit other than make phone calls). Just sold it for a total of 162 with a net of 151,000 ($1k was earnest mkney). That’s around a 18% return in one year. Why aren’t you faggots doing this? I’m debating selling 30% of my rentals and using that money to continually flip houses to generate more profit to buy more rentals.

>> No.56750913

>>56750889
How do you not get ripped off by contractors without doing any work yourself?

>> No.56750918

i'd rather click some buttons and make profit without dealing with other humans?

>> No.56750920

>>56750889
>leverage to the tits on a paper trail so thick up your ass you can ever pull out if there's a down turn
If it was so good anon, everyone would be doing it, would love to see the market in 2024 tho

>> No.56750948

>>56750913
You learn fast. I feel like this contractor squeezed 15-20k from me that wasn’t necessary. But again, even so I am satisfied with the return but I won’t be going this route with my next flip. I’m going to get my contractors license (it’s a pretty simple process) and cut him out and do all the communication with the subs myself.

>>56750920
Zero leverage was involved. It was all cash. Told myself the absolute worst case would be I rented it out, which would only be around a 9% return annually which is still not the worst thing.

>> No.56750982

>>56750889
>Why aren’t you faggots doing this?
>Zero leverage was involved. It was all cash.

How about you go fuck yourself.

>> No.56751001

>>56750889
you forgot to account for capital gains tax and one year of property tax. also $38k for a house is serious "smoking meth out of a broken lightbulb" flyover territory. even the shittiest houses in my meth/fent addicted hometown in rural pennsylvania are like $80k.

>> No.56751055

>18% return in one year
I'll stick to swinging highcaps for 20% a month, thanks.

>> No.56751109

>>56751001
Yea it was in pretty shit shape. And it was small. I’m actually closing on another house next Wednesday that cost 80k amd I expect to spend 50 in it and sale for 190-20k. Best part is I will do thay and roll over to avoid captial gains like >>56751055 says and continue that cycle until I get a house I like and just keep it to rent and dodge the gains tax since I won’t sale it.

>> No.56751121

>>56751109
Fuck. Didn’t mean to quote >>56751055

>> No.56751159

>>56751109
How can you dodge capital gains?

>> No.56751178

>>56750889
my retirement plan. Ive flipped a couple homes, the nightmares are still fresh in my memory. Most neighborhoods you cant buy a 30k gut to studs and put that kind of equity into it expecting strong returns

>> No.56751202

>>56750889
SPY did 19.4% so far this year. No effort.

a CD does 5.5% no risk.

CCL (Carnival Cruise) junk bond can do 11%.

so idk, good luck man.

18% isnt high enough for me to take that risk.

>> No.56751267

>>56750913
You don't, OP is larping like 99% of threads on this website. Don't take any advice from 4chan unless it's specifically telling you what skills and certs you need to get a job and even then take it with a grain of salt.

>> No.56751402

>>56750889
meanwhile bitcoin is up over 100% this year