Investor · Milwaukee, WI · Member since 2016 · 42 posts · 6 votes
Good morning everyone,
I am currently in the middle of a live-in flip that is about 80% complete. Not much left to do as I am approaching 2 years living in this home. If I were to sell the property in April or May next year, I estimate a conservative profit of ~ $95,000 before realtor and closing fees. However, I could also stay in the renovated home and do a cash out refinance which would leave me with roughly $40,000 - $50,000 cash on the side to invest with. ($245,000 ARV - $150,000 (Mortgage) - 20% DP of ARV).
I am not a seasoned investor since this is only my first house flip. My question is what would you guys do if you were me? Stay in the house, take the re-fi cash + hard money to do another flip or cash out completely - go rent a house and use all the money to do another flip? I know there's gotta be some lucrative options that I am missing?
Rental Property Investor · Bettendorf, IA · Member since 2017 · 187 posts · 256 votes
8y
@Ryan Biankowski here's another idea to consider. A local bank in my town, rather than requiring a cash DP, is willing to put a second lien on a primary residence for the amount of the DP (assuming you have enough excess equity and no existing HELOC). The loan would then be at regular terms. If you could find a similar option in your town, you could invest with your spare equity without incurring costs of selling or cash out refi, or incurring interest with a HELOC. I haven't used an arrangement like this, but certainly worth investigating. Best of luck!