quote:
95%. Foolish or not, I don't like to invest in things that are not tangible.

I'd be willing to bet my ROI for real estate smokes any of the stock gurus here. I bought another house this year as my primary residence. I utilized a $100 down payment program offered by HUD. The house was picked up for $52,000 with $12,000 more dedicated to repairs(new windows, refinishing the hard woods, new appliances, etc.)

I could sell the house tomorrow for $125,000 or wait a few months and get closer to $135,000.

So I only put $100 of my own money into a tangible asset that I can sell tax free in two years or less (if certain requirements are met) and make a profit of near $50,000 - $60,000 dollars.

I've done numerous deals like this and so can anyone else. The average Joe can find great RE deals if they are patient but I feel like even the most seasoned stock investor can easily get burned.

I'm becoming increasingly convinced that smart money should start looking at hard assets. 95 percent is alot but I get what you're saying. The profit from selling a hud house is tax free? And are you just talking about picking a foreclosed house up cheap and making it look respectable before selling it?

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Posted by dat yat

Chef Pass

Member since Jun 2011

4335 posts

Posted on 8/12/13 at 11:35 am to beaverfever

quote:
The profit from selling a hud house is tax free?

Any house that is was your primary residence for two years is not taxed on gains, within limits.
With HUD you have to live in it for one year before you can rent or sell, if you but it as an owner occupant.

I bought a duplex from HUD as an investor after the intro period was up for owner occupants. I am not allowed to flip it or do a cash out refinance for 90 days.

I'm at about 75% real property.

This post was edited on 8/12/13 at 11:38 am

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Posted by Latebloomer

Passing through

Member since Jul 2012

262 posts

Posted on 8/12/13 at 11:37 am to beaverfever

Go to areas that have been in a downturn and are starting to come back. I'm closing on a rental house this week that is selling nearly 40% below its original price and only 9 years old and in great shape.

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