I just purchased my first property that I’m living in right before covid hit in Indianapolis. I got a very good deal at 140k with comps at 200k-260k. I’ve put some sweat equity and about 3k into repairs. Some paint and installed an AC unit that it was lacking. My friend who flips houses and is a realtor thinks if I put 20k into it (doing what I’m able and hiring out the rest) I can get 230k-260k for my property. I’m not wanting to sell though. I’m wanting to potentially do a cashout refi or get a heloc to buy another house but I’m not sure how hard it would be to get approved.

There’s a property a block north that I’ve been in contact with the owner. Her brother lived in the property but he passed away and they want to sell to me. I’m wanting to do a 203k loan but I don’t know if I’ll get approved since I already have a conventional mortgage. I would be getting a great deal. Can I get a 203k loan and then rent out my current house? Do I need to be making enough to make payments on both in case it can’t get rented? It’s a very popular area and close to a university. I know there wouldn’t be any problem renting.

I’ve been making 3k/month but will be going up around 6k ish a month or more. 2k base plus commission as an acquisitions manager for a wholesaling company. Sorry this is so long. If I need to clarify anything I can. Any help would be greatly appreciated! Thanks.

@Nigel Everett McGill It sounds like you need a strategy. Slow down and figure out which path leads you in that direction, and take it. If you bought a property at $140 with an ARV of $230 low end it looks like a flip opportunity. You're doing a live-in flip which is how I started out. You'll learn so much which is extremely valuable! Unless it cash-flows positive after the rehab I'd be gearing up to sell that property.

I don't know how you funded the first property but I'd research more on the 203k loans. There's plenty of threads on BP discussing it. There are pros and cons and in my opinion the cons kill the idea of trying it myself. 

@Jaron Walling Thank you I appreciate the advice! I’ll definitely do some research on it here.

I actually got into this property with only 1% down because I got a government grant. And the seller gave me a credit for 6k at closing so it’s been an awesome experience for me. I’d consider selling but a lot of people I listen to say they wish they kept all their houses instead of selling.

@Nigel Everett McGill No problem man! That's a good position to be in considering how crazy 2020 has been. If you haven't already I would build some spreadsheets for you investments and run the numbers. Maybe the rental income is better than you think. At that point you could hold the property. If it's costing you money every month (as a rental) that's really dangerous. You could cash-out ReFi once the rehab is complete and buy the next DEAL. Cheers. 

You can certainly do an FHA 203k while you have an existing conventional mortgage.

But you'll need to make enough income to qualify for both mortgages.