All Forum Posts by: Adam Avinger

Ok so it depends on which bank you ask. Generally most banks require a 12mo seasoning period before allowing a cash out. Fannie Mae and Freddie Mac introduced this flipping rule so if your going to try and cash out into a 30yr traditional with them, your gonna have a helluva time before 12 months. Now.... I personally am using a bank which if I roll my commercial ballon loan into a 5/2 ARM with a 20 yr Am, they'll let me cash out as soon as the property is ready to roll into the loan. Usually after the entire rehab is completed. Thirdly, if your in a ballon now, and are having trouble, you can roll your ballon into an inhouse bank loan, which won't require an additional closing, and then at the 12 month mark, refi and cash out. Hope this helps.

well, yes the GC would pull permits for when they are required. Usually thats only for additions and adding permanent structures not already in place. GCs aren't cheap, but handle the bulk of the rehab process.

House is going well. However, all this rain has really been problem with the leveling.... its pushing my finish back quite a bit. Looking for another house to flip though. Hope your holidays were great, and Tiff and I are both looking forward to the 19th as well!

Just like the title reads, im looking to connected with some wholesalers in Shreveport, LA. 

Ok so I said build wealth, and that certainly the long term goal. The Short term goal this year, however, is to accomplish at least 3 flips to use as a means to raise capital for further investments.

So, the overall goal is to build wealth. And because we have very little of our own money to be able to use for investing, we wanted to do flips to build enough capital to become a little more self sufficient. at the end of the day ill make twice the mortgage note on the rent. I understand that ill capture some equity buy doing a buy and hold. But i don't want to make the mistake of holding this property if it will inhibit me from being able to get involved with future deals down the line.

So Im torn between two outcomes. I may be trying to sell a home that I am currently rehabbing, and make a small profit on it, but the fact also remains that I could also end up breaking even. If I were to Buy and Hold this property, I can cash flow, but only minimally after ALL expenditures, but only minimally. I will however, have a healthy equity position in the house.

I want to continue doing deals, and right now the goal is to do flips, so that I can bank roll profits until I get enough to become a cash leverage player, rather than relying solely on financing through banks and HMLs.

So to simplify, If I Buy and Hold this house, will I likely see my credit score decrease? And could it negatively affect my ability to do these deals in the future?

Or should I just flip and risk breaking even?

Thanks BP!

Thanks everyone for all the fast replies! So basically, what im getting is that the only reason id be putting the GFCIs in, is to properly upgrade the outlets to a 3 prong according to code, since it won't actually be fixing the open ground issue.

Has anyone had the experience with a homebuyer during the due diligence period where the "open ground" has been an issue? If so how was that resolved?

Thanks everyone!

Okay so my wife and I are flipping our very first property. We got a older craftsman style home in a very desirable neighborhood, filled with homes like this one. The issue is that its basically all 2 prong electrical outlets... with open grounds of course. Ive consulted with an electrician and he has said that he can install GFCI's for a pretty good price to convert from a 2 prong to a 3 prong. But I also just read that they must be marked "No Equipment Ground", and if and when an inspector comes around to test them, it will still show "Open Ground".

Im a little confused. To those who have some experience with this, would you upgrade to GFCIs to make sure all the plugs were 3 prong? or would you leave be with 2 prong. or what would you do? Im sick thinking about having to fully rewire....

Any advice plz