I am buying a house for $200,000 (the house needs no work) and selling it for $310,000 this will take place with in twelve months, my question is how much profit will I make after every thing is said and done (taxes,profit, gains, realty cost is at 4% etc.) this is real numbers Im working with so if the info could be with in a couple of thousand give or take that would be great.
I also was told to wait a year, If you can give me the numbers if I wait after one year that would be great to!
The is in the Dallas Fort Worth area
2007-07-25 11:10:39 · 4 answers · asked by LIONEL H 1 in Business & Finance ➔ Renting & Real Estate
lets just pretend for all you people who have nothing better to do then to shoot down my question with a question !
Its a $110,000 profit lets get over that(it happens) and move on if you can help that would be great .
2007-07-25 14:06:34 · update #1
This scenario is very, very unusual for today's soft real estate market. How could anyone tell you With any accuracy what the market will support in 1 yr? Why would the current owner just give away 110k in equity? The same person who is advising you to do this should be giving you your profit estimates and most real estate agents are not qualified to discuss capitol gains unless they are also a tax adviser. If it sounds too good to be true...well you know the rest.
Below are websites that cover the projected 2007 real estate market for Texas from professionals that have in this business for a very long time.
Good luck to you!
2007-07-25 11:58:13 · answer #1 · answered by Etta P 4 · 0⤊ 0⤋
You are advised to check to reassure yourself that this property will bring $310,000 in a year. What is your source for this supposed market value a year from now ?
It's highly unusual to be able to purchase a house which needs NO work and flip it for $110K in one year.
2007-07-25 18:39:03 · answer #2 · answered by acermill 7 · 0⤊ 0⤋
Two problems.
First, no information about how much your taxes are, any HOA fees, statix expenses to own the house.
Second, no crystal ball that says you will be able to get $310,000 a year from now.
2007-07-25 18:44:37 · answer #3 · answered by godged 7 · 0⤊ 0⤋
how do you know the market will bear $310K for this property in 12 months? you don't....so be careful...what guarantee do you have?
good luck
2007-07-25 18:17:07 · answer #4 · answered by Blue October 6 · 0⤊ 0⤋