So my husband and I are planning on renting out our house while doing a live-in flip. This would be our first RE investment. We have no experience and are a little scared rightly so.
We want to put an offer in on a house that has been on the market for over 4 months. The house is in great shape, just needs cosmetic stuff (that I know of). In a great neighborhood.
Still working out the financing part. We have an FHA loan on our current home. Not sure how that affects our ability to obtain another loan.
Hoping for some advice on live-in flips and renting our home. Anything specific I should know?
Ideally the new place has more than one bathroom. Then you can work on one bathroom at a time. It is tough to live in a place with no working toilet or shower.
When I did my kitchen I moved the microwave to the basement along with the necessary kitchen dishes since there is a deep sink down there.
Clean up after every small job. You don't want to be walking around construction messes.
The new house has 2.5 baths! The kitchen needs some work but isn't horrible. There is a basement so we could utilize that space as well.
Thanks for the reply!
@Kelly Tucker One problem with a "live in flip" is that the work proceeds so much slower than if the house were unoccupied. You're generally limited to doing one room at a time, which is not very efficient.
1, Screen any potential tenant very carefully.
2, Have the house you're purchasing thoroughly inspected.
Having an FHA loan on your current home won't affect you getting another one
My husband and I have been doing a live in flip for 3 1/2 years. Almost done and cannot wait for this to be complete. A lot of lessons learned for sure and things we would have done differently. Looking back we should of hired out more people to do work. Because my time is worth money and the time we have spent has been considerable and we have lost time with our children because of this house. My suggestion is sometimes it is okay to pay a professional to do work if the "time" gained is greater than the dollar amount lost to pay someone. I can only say now that I am at the end of our live in flip, that it has been a great experience but I am not sure if I would take such a large venture on again unless I had hired contractors to quickly renovate and then be able to live my life. So calculate your money VS time when evaluating repairs on your soon to be home.
Good luck to you guys!!!!
Check on that FHA thing... pretty certain that FHA limits you to having one (1) FHA insured loan at a time... http://portalapps.hud.gov/FHAFAQ/controllerServlet....
As for living in a flip... a great way to test the marriage!
Good luck to you!
Going to refinance my current home into a conventional loan which will help with the down payment on the new home.