Converting a Rehab into a Rental

2 Replies

I'm in the middle of a second flip property in Fayetteville, NC, and we've decided to investigate turning it into a rental to add to our portfolio.

Currently, we are using a Rehab LOC from the bank to finance the purchase and repairs (75% of purchase price and 75% of repairs).

Does anyone have suggestions on how to finance this into a 30 year mortgage? A couple of banks and brokers said I may need to hold onto it for a year before I can refi it based on ARV.

ARV should be $115k. Bought it for $60k and have put in about $35k.

Complicating matters - I already have 4 residential loans: primary residence and 3 rentals.

Potential solutions - my wife isn't on any of my property loans and neither is my business partner, so maybe they can "buy" the property?

You can get more than 4 loans. But waiting the year may be necessary. I would try credit unions and small regional banks. 

Thanks for the suggestion @Walt Payne . My LOC is with a small local bank in Fayetteville. My broker is checking into some options for me, but so far it has been "wait 1 year" or "buy it first with cash or your HELOC, do the repairs, then we can refi it".

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here