How long do you have to hold a house before flipping it?

When can i flip a house

How long do you have to hold a house before flipping it?

There is no law, that I’m aware of, that states a minimum amount of time one needs to hold a piece of real estate before flipping it.  The only caveat, that I know of, is if you’ve purchased a property or plan to purchase a property with an FHA loan.

An FHA loan is a popular form of government-backed real estate financing because of its lenient borrower qualifications (i.e. low down payments and FICO scores below 600).

According to this HUD document, HUD (which governs FHA loans), states,

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“FHA security instruments require a borrower to establish bona fide occupancy in a home as the borrower’s principal residence within 60 days of signing the security instrument, with continued occupancy for at least one year.”

Similar restrictions may also apply to other forms of government financing such as VA and USDA loans.

Outside of this, I’m not aware of any other restrictions.  If you have a loan on a property, you’re considering flipping, I advise you to consult your mortgage loan officer.  Your loan may also have a clause that will force you to pay a prepayment penalty if you sell your property within the first few years of ownership.

Additionally, you should consult your accountant to see how you may be impacted by capital gains taxes.

About the author

Brandon Jones

Desiring to escape the clutches of corporate America, I started investing in real estate in 2015 and left my job in 2020 to become a full-time real estate investor. I now teach other how they can experience freedom through real estate investing.

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