How to get out of fix and flip

Question

In December 2024, I purchased a condo through a fix and flip loan under my LLC. The loan is for 6 months. It's almost 6 months in June. I can't rent it because the HOA has a 2 year rental restriction and it's not selling. I can't get into a DSCR loan because I can't rent it. What can I do??! I do not want to refinance it under my name 😭 any help on guidance would be greatly appreciated!!!

Chris Seveney · Answer

Assuming you finished the rehab, can you drop the price? share the listing and we can provide added feedback

Caleb Brown · Answer

First comment off the bat is the photos stink. There is only 13 and they are not great. I would always hire a photographer. There is 3 available in your condominium and a ton available in that city. I think the DOM is going to be longer. Did you look at that going into it? How long have you been listed?

Caleb Brown · Answer

Can you move into and refi into a long term loan? Outside of that your only option is dropping the price and get it moving. Condos are slower sellers. Make sure it is listed well with marketing to go along with it

Rick Albert · Answer

Can you move in? That way you can refi into an owner occupied loan?

Also, the photos aren't great. Higher a professional photographer. When I took a look I couldn't tell that it was remodeled. My guess is that it looks better in person.

Unfortunately this is part of the risk with flipping condos. You mentioned you can't go any lower but at $602/month that eats profit pretty quick. You may want to sell at a loss and move on.

Connor Hibbs · Answer

Hi Erika,

If you aren't able to get an extension with your current lender then you may want to consider a bridge with a rate/term refi. The only issue that will come up is that when they see that it was recently listed. Going with the rate/term option though you should be able to cover the existing loan and get your rate a little lower.

There were also a good number of comments regarding selling the property above that you should consider as well. best of luck and I hope you're able to get it sold before your maturity date hits.

Mike Klarman · Answer

Lower the price to your breakeven or to whatever loss you are willing to take to get this off your plate.  Sounds like your only option.

Drago Stanimirovic · Answer

Erika, you’re in a tough but common spot with fix-and-flips in HOA-restricted properties.

Since a DSCR loan is off the table due to the rental restriction, and you don’t want to refi under your personal name, your best option is likely a short-term bridge loan under your LLC. This would buy you more time to hold and sell without rushing into a bad deal or using personal credit. Some lenders offer 12–18 month interest-only bridge loans that can refinance your current fix & flip loan and give you breathing room.

Luis Maqueira · Answer

Erika,

I/O is the best payment possible only a Heloc is better thar I/O.

There are options to  refi to long term not rent.  Contact me I give you my Lender.

what people from our group is doing is Rent to Own to serious buyer fix credit, income tax and they can buy next year.

But you are not a landlord nothing to fix or management issues.

Luis Maquiera MMP

Erika Montane · Answer

@Chris Seveney https://www.realtor.com/realestateandhomes-detail/140-S-Cypress-Rd-Apt-128_Pompano-Beach_FL_33060_M59383-50691?cid=soc_shares_fs_ldp

How to get out of fix and flip

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