flipping
I'm new to the real estate game and I'm trying to acquire my first flip (put an offer in Friday) My plan was to move into a home and work on doing the renovations myself, then sell it in 3 months. I know that a FHA loan requires you to live in the house for at least a year. I was under the assumption that with a conventional loan, I could sell it after 3 months of closing. I asked my bank today, and I was told that you have to occupy the house for 6 months before you can sell it.
I have looked into hard money and the rates do not leave much room for a profit. Does anyone know of a way to finance a house where I could sell it in 3 months without hard money or cash?
Thanks in advance!
Jason
Most Popular Reply
I am not sure about the rules surrounding your bank loans, but one word of caution: If a HML makes the deal real tight for a 3 month hold I am wondering how tight the deal is to start with, as you pay a lot more closing costs with a bank loan than you typically do with a HML so the few percentage points (even if a 6 month minimum on the HML) shouldn't be making or breaking the deal.
Make sure your deal is really a deal before you jump in. Run the numbers by us or another investor in your area if you would like some feedback.