February 6, 2018 at 3:33 pm #157042
I received a moderate inheritance and was able to purchase my current home for cash ($125k). I essentially flipped my previous home and made roughly $60k in profit. After paying off some debts I have about $30k in savings, which is about 6 months salary. I really enjoyed the renovation work on my previous home. I used contractors for the big stuff (carpets, appliances, stucco), but I did all the painting, landscaping, light/faucet fixtures, vinyl flooring, etc. It would be great to ditch this cube farm that eats up all of my daylight hours and flip houses full time. I don’t have any illusions about the hard work that goes into it. I’ve done it. I enjoy the work; it’s more satisfying than sitting at a computer all day. Sorry for the rambling, but I wanted to give you a quick picture of my situation. Credit: 705, Owner-Occupied Property – Equity: 100%, Est. Value (Zillow) $136k
I’d like to start small by purchasing a HUD or Foreclosure for around 80-90k and maybe sell for 120-130k. I would be happy just replacing my job income of $55k/yr., so if I make 20k, 3 times a year, I’d be happy. Based on your article, it sounds like the HELOC would be my best bet, is that correct?February 6, 2018 at 3:40 pm #159135
Hi Arthur: Thanks for visiting our site and asking a question. It sounds like your first flip went very well. A HELOC sounds like it would be a good option for you. If you need additional funds, you may want to look into a hard money loan so you can buy another property to fix and flip. These are generally short term, interest only loans that can finance the acquisition and renovations on an investment property. You would pay back the loan with the proceeds from selling the property. Here’s a link to an article I wrote on starting your own house flipping business. https://fitsmallbusiness.com/how-to-start-your-own-house-flipping-business/
Keep visiting the site because we have some great upcoming articles including one on a house flipping business plan that includes free templates.
Best of luck,