Hey everyone,
I know during the last decade during the boom many people would buy a foreclosure, fix it up, then sell after living in it for 2 years. All the gains up to 500k filing jointly would be tax free. I understand this worked beautifully during the inflationary time. But what about today, in a falling or non appreciating market? Is it still feasible to buy an REO, fix it up, then sell it 2 years later to make about 50k-100k tax free? To me thats a pretty good plan. That equals out to about 2-4k tax free money every month. I understand there is some downfalls to this, such as moving your junk every 2 years, but if that is all you did it wouldn't be a bad gig. I know a lot of builders used to do this. But in today's market is this doable? what are your thoughts and ideas?