Flipping with an FHA

[Andrew Sassaman]

I plan on buying a run-down property with an FHA loan and while living there for the mandated 12 months I will fix it up and sell it at the end of the year. I was wondering if anyone else has attempted to do this and if ya'll had any success. I know its not a true Flip but I want to capitalize on the low down payment.

Thanks

[Teri Feeney Styers]

@Andrew Sassaman two suggestions: get an FHA 203K loan. This will give you the money to rehab in addition to purchasing. Talk to your lender about this and if they don't offer the product find a different lender. It will keep your out of pocket expenses very low while building the equity you desire.Yes, you will have a GC involved with some of the work; but consider this an opportunity to learn about the process.
Secondly, don't sell after one year - sell after two years. If it is your primary home for two or more years then the cash you put in your pocket is tax free!