Updated almost 5 years ago on . Most recent reply
Great Deal- Best Course of Action?
I have found my first house to invest in and looking at different options to get the most from the investment.
Purcahse- $75,000. Used a hard money lender for purchase amount and will be a 50/50 split on profit
ARV- $115,000
House is being purchased from a wholesaler and is 90% flipped already. New roof, windows, furnace, water heater, carpet, shower/tub, electrical (all of the big ticket items)
The easy route is to finish the flip and sell for a profit. However, is there a better investment option? BRRRR? How would that look?
Most Popular Reply
What is the renovation budget/estimate? That is going to heavily determine what you do. With an ARV of $115k you could potentially cash-out refinance roughly $86k. That would mean your renovation budget would need to be under $11k in order to recoup all your cash in the deal. With that being said, you would then have to factor in your hard money lender as well. Do you have an agreement with them based on a flip? Is there an allowance for a refinance? That will all factor into your deal analysis.