New (aspiring) RE investor. I have a hack idea for my first flip.

[Chris Markarian]

Hello all,

Long-time lurker, and recently decided to get serious and commit to action. I am interested in BRRR, Multifamily perhaps, maybe even fix/flip. Anyway, for my first deal, I had an idea, and wanted your input (be as critical as you want, please).

I still have my VA mortgage loan benefit unused, and recently was approved for ~$700k, and I'm in Utah.

My idea is to find a distressed property which requires rehab, and one that would ARV around $500-$600k, use hard/private funds, complete rehab, and then "flip" the house to myself as a purchase with my VA loan.

As an example, I create an LLC, find a distressed property for say, $450k, acquire the hard/private funds, rehab $50k, purchase for $550k with my personal VA loan, put $50k in my pocket and now I have some capital to put down on my next venture.

Thoughts? Suggestions? Does that sound too simple (not easy, but simple)?

Thanks in advance. 

[Jason Wray]

Chris,

Your on the boarder of talking about mortgage fraud....VA underwriters are trained to look for all red flag issues. You are wanting to buy a home that your are already own and on title to that does not work. You could refinance the home after the ARV and pull out some cash keep it as a rental and move on to buy more...