5% flip tax?

Yes. No.

The thing to do is to research the genesis of that flip tax rate. Sometimes it's a temporary measure and will be changed once a certain reserve threshold is met. Sometimes the low monthly maintenance makes it worth it. It's something that I think needs to be evaluated in the overall context of the building. Some banks are now insisting on a reserve fund of 10% of the budget, for instance, and this could be a reaction to those kinds of policies.

Karla Harby
Lic Real Estate Salesperson
Charles Rutenberg LLC
kharby@crrnyc.com

find another one

5% flip tax if you live there MORE than two years? That doesn't make a lot of sense. Are you sure it's not 5% flip tax if you live there LESS than two years? Otherwise it seems like the building is encouraging transients.

Sounds like opposite of flip tax. More of a longterm investor tax. And yes, 5% is at the very highest end of the spectrum. Most are more like 2% with some at 3%.

You can always negotiate that the seller pay for half or all of it for that matter. 5% is very high though.

Again, you need to paint a complete picture. We have a 5% flip tax or 10% of net profit (whichever lower) but building has multiple 7 figure surplus and low maintc.

I have seen flip taxes as high as 15% of gross profit. Not somewhere I would recommend buying though...

agree with tojc516 with "We have a 5% flip tax or 10% of net profit (whichever lower)"

Usually its a formula, and not simply 5% of purchase price. Confirm with mgmt before jumping to conclusions.