The Smart Strategy of Live-In Flipping: How Carl and Mindy Jensen Profited $1 Million from Seven Flips

Colorado Couple Profits $1 Million from “Live-In Flips”

Carl and Mindy Jensen, a couple based in Colorado, have found a unique and profitable strategy for flipping homes. Unlike traditional flipping, where investors buy a property, renovate it, and sell it for a profit, the Jensens have been practicing what they call “live-in flips.”

A live-in flip involves rehabbing a home to increase its market value while actually living in the property. This approach, according to the couple, helps reduce some of the risks associated with traditional flipping.

“The beauty of this strategy is you need a place to live,” Carl explained to Business Insider. “You’d be in a much riskier situation if you had bought a separate house that you need to flip as soon as possible because you’re just pouring money into it, whereas we’re just paying the mortgage on our primary house.”

The Jensens estimate that they have profited $1 million from their seven live-in flips. They shared four key tactics they have used over the years to successfully flip homes for a profit.

One of their strategies is to wait for the right deal rather than settling for an average one. They emphasize the importance of buying a “dumpy house in a great neighborhood” to maximize the potential for adding value to the property.

Additionally, the couple focuses on knowing their rehab costs and often opts to do the renovations themselves to improve their bottom line. By DIY-ing the renovations, they can control costs and ensure a higher return on investment.

One major advantage of live-in flips, the Jensens pointed out, is the ability to avoid capital gains tax on the sale of the properties. By utilizing an IRS rule known as the Section 121 Exclusion, which allows taxpayers to exclude up to $250,000 (or $500,000 for a couple filing jointly) of the gain from the sale of a primary residence, the couple can maximize their profits.

While live-in flipping comes with its own set of sacrifices, such as living in a construction zone, the Jensens have found it to be a smart and profitable way to turn their primary home into an investment. Their success story serves as inspiration for others looking to enter the real estate investing market with a unique and less risky approach.