I want to flip homes, I am the contractor/investor. what is the approx % in carrying/sales tax in a flip?

Also,.... what process is it best to buy in the foreclosure state and what is best: probate, tax liens,auction properties etc. live in northern california.

There are some good answers here, but I will add this:

There are so many people interested in flipping due to the TV shows on the market, it is driving up the cost of prospective properties. With the down housing market, more houses are sitting for longer DOMs, buyers are in a position to take their time and view many properties before they buy. They are asking for alot, sellers concessions, money off the price, etc. - all of which cut into your profit.

In my town, there are many foreclosures that were purchased by good people with the intention of flipping. They either took on more than they could handle, ran out of time, money, ambition, and the lender foreclosed.

You really have to be sharp and well versed in your market to flip homes sucessfully with these conditions.

there is no carrying tax/sales tax on real estate = your costs would be renovation plus monthly mortgage and taxes until you sell the house - could be one month or one year depending on the real estate market - make sure you have plenty of cash

From your question it doesn't sound like you are ready to flip homes, without loosing
your shirt. In order to do a real flip you need to have a buyer interested in the home your looking at and all parties involved close the same day. So you close on the one you are going to sell, and after you sign, you walk to a different room and then transfer to the buyer you found. I be live it would be better for you to purchase a home then do a lease purchase for you first time.

First off, leon is talking about wholesaling which is not a flip home. A flip home is buying low, renovating and selling in a short time period, 3 weeks to 3 months.

Each state of foreclosure, pre-foreclosure offers very different advantages and disadvantages. Too many to list in this forum. I would recommend reading "Buy it, Fix it, Sell it, Profit!" by Kevin Myers. It is a pretty good book on what to expect from a flip home.

I have done flip homes in Michigan (before the market died) and the MOST important thing to focus on is TIME. No matter what, always stick to your time frame of completion. nothing will drop your profit quicker than mortgage, tax, and insurance costs of holding the home for an extended period of time. Good luck!