YOUR GOING TO LIVE WITH YOUR TENANTS :eyecrazy:
Flip It!!!
Take the money and move on to the next one.
If you can live and work out of one room. Then find the cheapest place to live, not in a war zone, we do not want to see you burglarized, with access to a kitchen. Get a van or pick up truck. You will be in it a lot. Use your kitchen to take your food with you. You want to eat healthy and cheep. Not fast food unhealthy and blow a lot of your hard earned dough.
Once you have your marketing system running smooth and people are calling you with deals all the time. Start a self directed IRA. Have your IRA buy the next deal. Now at a young age you will have started a very good retirement fund. Don’t worry about the IRA now. Just keep it in the back of your mind. After you have done a few deals, then look in to it.
As far as Phone service goes, I like Vonage for home with cable internet and Nextel with the free incoming.
For right now . Flip it , move on to the next , flip it
Remember - You make your money when you buy.
If your offer does not embarrass you, it is not low enough.
Wishing you success
Bruce
Talking about committing a felony on a public forum is probably the most boneheaded thing I’ve seen to date. :o :
here’s a another angle people don’t often think about.
if you don’t report on your taxes then you can not count that income when you go to get your next loan. Sure you can do no doc loans, but why give the bank extra money.
making money in REI is not that difficult; why risk get into trouble with IRS. I know someone who was audited in detail by IRS. It was a HUGE hassle.
To ryanpal:
The answers to this post, like all other “what do I do” posts, won’t really help you decide. Ultimately, the answers are all opinions. Opinions, I might add, that are based on the posters values and ideas of what THEY would do in your position. Your own plans and goals will (or should) greatly determine what you will do with the property.
To wil817:
The argument, “Everybody else does it!” rarely cuts in a Federal court. Ask the people that got caught for tax evasion how that went.
In fact, ask some of those guys (at least the smarter ones) that are currently not reporting income how difficult it is to hide even $1k a month in unreported income. You know, the IRS boys may question how you’re paying an extra thousand or so a month on your property if you don’t make it, don’t you?
Besides, supposed anonymity breeds stupidity. You’ve just posted on a public website what you intend to do. You’re probably already on the hotsheet as someone to watch.
good luck to all,
Raj
Oh, and as someone that owns an unrelated (tropical fish) forum I can tell you that feds DO watch forums and when they see something they want to go after they DO request IP addresses, email address, etc and go after the person. Every time you post your IP is logged. With an IP address and timestamp it is very easy for the feds to get your name and address, even if they IP address changes every time you login. All they need to do is see who had a lease on that IP at that moment in time. Hell my co-owner even had US Fish and Wildlife show up at his door a few times inquiring about some folks on the forum that weren’t obeying the law.
EDITED
sorry, i didnt mean to offend anyone. i actually pay taxes all the time. lots of them 
Unfortunately it’s not rent free ;/ however it’s not to espensive either ($50 a week). I was leaning towards keeping it with the assumptions capital gains would be around 30%. Upon further investigation, it looks to be more around 15%. Still more than I’d like to give but alot better than 30%. With this in mind, as of now, I’m going to go with my original plan and flip.
thanks for the replies all
Wishing much success to you.
Start looking for your next deal.
;D
Bruce
Whoa, Horsie!
If you are planning on flipping the property, then capital gains tax does NOT apply. Any profit made from flipping a house (ie anything held for less than 1 year) counts as standard income (ie like a salary/paycheck) and is taxed as such. In a nutshell, your taxes will be whatever tax bracket that you are currently in, which I believe range from about 15% and up.
Raj
Thanks Bruce, I’m on top of it!
Thanks as well Rojer…under what circumstances does capital gains apply?