I'm interested in flipping multiple properties at once. I currently own a primary residency also. What advice can you give me on how to juggle multiple mortgages at once? What are some usual mistakes to avoid? What, if any, tax brakes are there?
Thanks in advance.
Hey @Cassandra L. -
I'd love to hear how your flips turn out.
The first option I'd suggest you research is to borrow against your primary residence. See if you have any equity that you could access either via a cash out refinance or a home equity line of credit. (Or maybe both.)
The beauty of a HELOC is that you don't have to use the funds right away and you can borrow against it over and over again as you see fit.
If you borrow against your primary you still get to take the tax breaks (interest tends to be tax deductible) because it's attached to your primary residence.
Start there, and if that isn't an option, I'd suggest checking out the options with local lenders about financing programs. As a heads up, some companies aren't interested in financing flips and some may charge you a fee if it is paid off shortly after the loan is originated.
Hope this helps! If you want more info on creative financing options, I'd be happy to give some to you for free. Just private message me. : )
Hi Cassandra, I like to address only part of your question. From you question I am assuming that you are new to the business. If that is the case than I would suggest learning to walk before you start running. Start slow and learn the business. If you are working on one project, mistakes can be handling easier than if you are working on three projects at the time and you are making same mistakes on all the projects.
Concerning you question on “how to juggle multiple mortgages?” I am assuming you are asking on how to qualify for those mortgages. If that is intended question, than I would need more information about your particular situation. If you share with us the price of the properties you are planning to flip and the amount of liquid funds available, then I would have a better idea on how to answer the question. Also, if you are new to investing I would suggest attending local Real Estate Investment Clubs meetings where you would meet people with same interest and have a chance to learn from the members or the speakers that clubs usually have at each meeting.
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