Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Creative Real Estate Financing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 7 years ago on . Most recent reply

User Stats

46
Posts
16
Votes
Ken Eck
  • Rental Property Investor
  • Colorado Springs, CO
16
Votes |
46
Posts

Combination financing for a Flip

Ken Eck
  • Rental Property Investor
  • Colorado Springs, CO
Posted

After reading, "Investing in Real estate With Little or No Money Down," I wanted to ask this, probably very beginner, question to anyone that may have experience using this tactic for someone who has little money outside of a Home Equity Loan (which would pay for the rehab- LTV 70% roughly 50G). This would be done for a potential flip, full asking is 49900.

Has anyone ever financed a property with say a 5/1 ARM, with no money down (is that possible?), paying PMI to lock up the home then used a Home Equity Loan to cover the rehab and is this a preferable option?

I have been crunching the numbers between this, a hard money loan, a personal/Home Equity Loan and a straight personal loan and if I'm doing them right, it is the cheapest option of the 4.

All houses in the neighborhood and directly adjacent are worth 125-150g, I'm looking to put enough into the project to get the ARV to at least 125, within reason of course.

If more info is needed please ask.

Thanks in advance!

  • Ken Eck
  • Loading replies...