What Would You Do In This Situation? (Investing Flip Profits!)

2 Replies

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?  

Best, 

Ryan

@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!

Have you considered rolling the $ into a new live in flip? 

No taxes on the net, so if you like the reno process why not go for the next one?

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.