How soon can I sell a flip?

Question

Hi, new investor here! I have purchased a flip and will be finished in about about 4 months. Is this too soon to sell? Purchase price of home when finished will be around 650k, thank you for any advice. I had heard there was potentially a 6 month wait but wasn't sure on the details.

Account Closed · Answer

What might have been said to you at some point, is that some lenders require "seasoning" before they will lend on that property ( a flip). That simply means some amount of time (6 months for instance or 90 days in another instance) to allow enough houses to sell so they have a basis for a new appraisal and proof that payments have been being made.

They just don't want anymore hanky panky like what was going on before the big crash. Call a local mortgage broker and ask if they know of any limitations and they would be happy to tell you what problems they've run into trying to financing for houses that have been flipped.

Elizabeth Wilson · Answer

Account Closed - Congrats on the find on Morse!  Beautiful area!  Honestly, as soon as you own it you can sell it.  There is no timeframe on that; although most buyers want to buy a finished product.  Good luck!

Account Closed · Answer

thank you all for the great advice!

Account Closed · Answer

Do you know the reasoning behind the wait?

Account Closed · Answer

It will be on morse lake, thanks for the advice!

Larry Smet · Answer

It also may depend on how you acquired it - for instance I think some foreclosures (e.g., Fannie / Freddy)  have a maximum increase (say, 10%) that a property can be sold for within a certain period of time from the acquisition (say, 3 months).

George Taylor · Answer

From our point of view, if you took a HML out then the sooner you can flip or refinance the better. Hope this helps some.