Advice needed on a temporary mortgage solution to close a deal

[Jon Ostojic]

Hello everyone. Thanks for taking the time. I've been doing a live-in-flip in Seattle for the last 2.5 years. Two realtor friends have told me my house is now $700k give or take, with about $300k equity. We've considered selling once we completely finished in the next 3-6 months and doing it again. 

I go to open houses all the time  and yesterday I went to one because it was a unique house/property. I was blown away by both the property and the house. For those interested:

https://www.redfin.com/WA/Seattle/10333-Ravenna-Av...

I've never seen such a place and I know it's unique. It has a separate entrance to a rental unit already (high on our want list), and the property is a sanctuary with stream. The house is in really good shape. I looked through the whole 30 page inspection report. It's in WAY better shape that our current house was.

The problem is I'm not ready. At best I was estimating 3 months to list mine. I'm wondering if it's in the realm of possibility to buy this place BEFORE we sell ours. Even if the loan isn't ideal, we could presumably refinance in a few months after we sell our house.

As a brief rundown I'm currently "house rich and cash pour" as I heard someone say recently. I own 2 cash flowing rentals on the west coast (one in BC Canada) with a total of $250k equity and my primary residence with about $250k-300k equity.  Not living month to month, but I don't have more than about $15k liquid at the moment. I could easily come up with around $30k more liquidity within a month or so.

Are there any non-obvious financing options that I'm missing to buy this house now before I sell mine?

[Nghi Le]

You could get a hard money loan to buy the new house, but the problem is they're going to want to see more reserves to buy something like this than $15k (or even $45k total).  Try to have at least 15% of the total costs (purchase + rehab), although 20% would work better.

What kind of loan on your current property right now? Are you able to get a HELOC on it in its current condition and pull out up to 90% CLTV? Sound Credit Union and BECU are a couple of good places that will give HELOCs up to 90% CLTV and can close within a month. You can also try to put HELOCs on your rentals, but that's going to be harder than your primary.