There is no need to wait if your purchaser is cash. If your purchaser uses a loan, it depends on the type of loan. They typically require a minimum period between the two closings, this can be 30,60 or 90 days, sometimes more if the house was owned by a government entity. The lender may require two appraisals on the property as well.
Hello Tony, flipping a property and how long to hold until you place the property back on the market, typically will depend on the title closing instructions and type of sale. VA, HUD, Fannie Mae, Freddie Mac may have a contingency clause. A buyer need to read the foreclosure sales contract thoroughly. When in doubt asked a REALTOR.
This is a complicated question that requires more information. Assuming there is nothing in your mortgage preventing you from selling right away, you don't want to incur more carrying costs than necessary as it will affect your bottom line of course. The home will not qualify for FHA financing for the new buyer when it's a flip. You just have to know that the pool of buyers will be reduced with just conventional and cash buyers. The neighborhood and price point will determine how much of a handicap it will be. Some neighborhoods don't qualify for FHA financing for other reasons. Talk to a tax professional to minimize your tax liabilities on your income. Unless something in your mortgage prevents it, I would say get it on the market right away. Best of luck with your new endeavor!
Real estate investing and "flipping" should not be entered into lightly.
MANY rules and regulations apply to the sale and exchange of investment properties. You will be subject to paying a capital gains tax of anywhere from 15%-23.8% on the gain depending on your income bracket. You can defer the payment of capital gains tax if you do a 1031 exchange when you sell the property. 1031 exchange rules have also been adjusted and will continue to change more before the end of this year (2013).
The Federal capital gains tax levels were recently elevated and the rules have been changed as of this year, and rules and regulations are still being adjusted through the end of this year.
Flipping your investment property is a complicated transaction, and one where you must know all the federal and state tax rules, and adhere to very strict time lines in order to avoid heavy tax burdens imposed on the gain, and against the sales price of the property being sold.
Below is a link to one blog on this topic. There is even more on this topic at the IRS website under 1031 exchanges.
Congratulations on getting the property flip ready in 3 weeks! Since you purchased the property with cash, I am guessing that your question relates to capital gains tax. There is a way to avoid this by doing a 1031 Exchange on the property. I can explain this process to you in detail.
Give me a call if you would like to hear more about how to avoid paying taxes on your flip.
This is a tough question because you don't state how you came to purchase or the property. Certain loans come with conditions. You may want to re-post your question and add how you purchased the property.