Comments on: Is Flipping Houses Investing or Speculating? http://www.doughroller.net/real-estate-investing/is-flipping-houses-investing-or-speculating/ Money Management and Personal Finance | The Dough Roller Mon, 13 Feb 2012 05:44:53 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: DR http://www.doughroller.net/real-estate-investing/is-flipping-houses-investing-or-speculating/comment-page-1/#comment-498 DR Fri, 03 Aug 2007 01:17:20 +0000 http://doughroller.net/2007/06/08/is-flipping-houses-investing-or-speculating/#comment-498 Engineer, why do believe #2 is not a flip? The plan is to rehab and then sell. It's something my business partner in Ohio does quite often. I think the point is that flipping a house is not per se speculating--it depends on other risk factors. Don't you think? Engineer, why do believe #2 is not a flip? The plan is to rehab and then sell. It’s something my business partner in Ohio does quite often. I think the point is that flipping a house is not per se speculating–it depends on other risk factors. Don’t you think?

]]> By: Engineer http://www.doughroller.net/real-estate-investing/is-flipping-houses-investing-or-speculating/comment-page-1/#comment-489 Engineer Thu, 02 Aug 2007 03:52:23 +0000 http://doughroller.net/2007/06/08/is-flipping-houses-investing-or-speculating/#comment-489 @DR I would agree with your point, except I would call example #1 clearly a flip, while example #2 is not. And example #2 is further distanced from being a flip if you live in the house long enough (24 months) to get the $250,000 exemption on income taxes from your gain. @DR
I would agree with your point, except I would call example #1 clearly a flip, while example #2 is not.

And example #2 is further distanced from being a flip if you live in the house long enough (24 months) to get the $250,000 exemption on income taxes from your gain.

]]> By: Paul http://www.doughroller.net/real-estate-investing/is-flipping-houses-investing-or-speculating/comment-page-1/#comment-99 Paul Mon, 18 Jun 2007 00:07:37 +0000 http://doughroller.net/2007/06/08/is-flipping-houses-investing-or-speculating/#comment-99 I just invested $20K into a house I purchased to flip. I think that investing in a roof, windows, furnace, etc. is comparable to buying machinary for a business. It improves the value of the property to produce more income. This is the essence of investing. Whether I choose to sell that improved asset now or 20 years for now is irrelevant I just invested $20K into a house I purchased to flip. I think that investing in a roof, windows, furnace, etc. is comparable to buying machinary for a business. It improves the value of the property to produce more income. This is the essence of investing. Whether I choose to sell that improved asset now or 20 years for now is irrelevant

]]> By: DR http://www.doughroller.net/real-estate-investing/is-flipping-houses-investing-or-speculating/comment-page-1/#comment-48 DR Mon, 11 Jun 2007 12:55:29 +0000 http://doughroller.net/2007/06/08/is-flipping-houses-investing-or-speculating/#comment-48 Engineer, in example 2 above, the house flipper makes improvements to the house. In my experience, the improvements generally include cosmetics (paint, carpet, etc.) and more substantial renovations (new kitchen, doors, windows, mechanicals, etc.) Under your definition of investing, would this not be improving the ability of this asset to produce? Engineer, in example 2 above, the house flipper makes improvements to the house. In my experience, the improvements generally include cosmetics (paint, carpet, etc.) and more substantial renovations (new kitchen, doors, windows, mechanicals, etc.) Under your definition of investing, would this not be improving the ability of this asset to produce?

]]> By: Engineer http://www.doughroller.net/real-estate-investing/is-flipping-houses-investing-or-speculating/comment-page-1/#comment-43 Engineer Sat, 09 Jun 2007 20:23:25 +0000 http://doughroller.net/2007/06/08/is-flipping-houses-investing-or-speculating/#comment-43 Way back in college, I took an economics course. IIRC, investing is defined as the purchase of capital equipment, i.e. improving the ability to produce. So, no, flipping houses is not investing. Way back in college, I took an economics course. IIRC, investing is defined as the purchase of capital equipment, i.e. improving the ability to produce.

So, no, flipping houses is not investing.

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