My husband and I want to begin flipping homes. I'm trying to figure out the best way for us to get funded and while I have some ideas, I would love some input as we are new to this.
Option 1- Hard Money Loan-
My first thought was this would be the best option for us but it looks like we will still need to bring 20-25k to the table. My original thought was we could float some of the rehab. Obviously, I have educated myself and this is not how it works. I have 20-25k in business accounts but I need it to run our construction business. My thoughts were to take a small business loan to float our construction needs and use the cash we have in the bank to take to closing.
Option 2- Sell Our House
When we moved into our house we couldn't get a mortgage, our credit was not great but my in-laws had a property they wanted to get rid of. We took over the mortgage. If we sell they will gift us the profit, which should be in the range of 100k. We would have to get a loan on a new mortgage(shouldn't be a problem, credit is great now), but we would also have to move and well we actually had hoped to rent this house out at some point. Means to start though if we need to.
I know there are many other options, but these are the 2 that I have narrowed it down to being the best fit for us. All other ideas or thoughts welcome!