We have about 80K equity in our primary home and 60K in the bank. We would like to start flipping. My thought is to use our cash to buy or use for the deposit and then get a home equity loan for the improvements. Is this a good strategy? Am I putting our primary home at risk?
I don't think so. I personally see flipping and wholesaling as somewhat risky ventures compared to BRRRR.
Hi there Reggie would love to connect
Like every investments out there, nothing is guaranteed.
A lot of people started investing using their HELOC, because it gives you a leg up compared to home buyers. Banks will not loan money for fixer upper houses. Buying cash is always very attractive to the sellers.
Therefore, you're competing with other investors. So make sure you keep getting educated and learning. Learn from other flippers and network with experienced investors in your area.
Build your team
Are you putting your home at risk? Technically, yes. The risk can be mitigated of course by buying a good asset at a great price and having solid rehab and ARV numbers.
At least in FL, coming on the market in the middle of winter may not be as much of s factor as it is up north.
How much house and rehab are you considering doing, Stephanie? How much rehab time are you expecting?
Would like to find a house built in the 90s that really needs just needs cosmetic work and updates. Small 1200 sqft or less, so maybe 20K down using cash and use 10-15K HELOC. 2-3 months rehab time.
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