Can I live in a flip?

[Tessa Burks]

Hi again! 

If I were to rent out my house, can I purchase a flip and live in it during the rehab? Then eventually move back into my house and have the house that I flipped become my first rental? 

[Kyle J.]

Hard money lenders do not allow you to owner-occupy the property. Plus, they’re not going to fund 100% of the purchase price and rehab, so you’re going to come up with some money. 

As for a HELOC, if $20k equity is all you have in the house that's likely not going to be enough because a lender isn't going to give you all of that money in the form of a HELOC. They use LTV. So if your house was worth $200k and you have $20k equity, that's 90% LTV and not enough equity to even get a HELOC.