Can I sell my home to my wife?

Question

Specifically, if I buy a foreclosed property for $60k, I would like to sell it to my wife for $100k (yes it's appraised and worth that much). I would purchase the property using a mortgage only in my name, and she would purchase from me using a mortgage in her own name. After she owns the property, we would spend time and a portion of the profit to fix the property up and sell it on the open market. In the meanwhile, I'd buy another foreclosure using a mortgage in my own name, and repeat the process after the first property gets sold. Please answer the question with only the information I've provided if you can!

Answer 1

While it's technically possible, I would have to defer to legal counsel on this as the issue that I see for you is seasoning.  Most lenders will want to see the property in your name for at least 6 and more likely 12 months.  If you turn the properties that quick, a lender could make a logical conclusion that your flipping and may deny your wife.  I would check with an attorney in your area as some states have tougher laws and lenders are more leery in regards to what your speaking of

Answer 2

This is only going to work in a non-community property state.   If you are in a community property state then you are selling to yourself.

You need to verify that your initial loan will allow a flip, most do not, but they are out there.   The FHA has banned them completely.   Also keep in mind that you will  be be paying capital gains tax on the 40k profit.