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Updated almost 8 years ago,
Do we use equity on our home to fund first flip?
Hey folks. My wife and I are REI newbies and are looking to flip houses. Although new to real estate on the investing side we have flipped two homes that we've lived in with great returns. We are self-employed (contractor over 10 years), credit score is 680, very little debt and we own our home. Currently, we are in the White Mountains of New Hampshire and will be moving to Jacksonville, FL (where we'll be flipping full time), in the coming months.
Our plan is to use our current home as a vacation rental giving us rental income, (our area gets about $1500 to $1700 per week). The question is, we own our home outright and it is worth about $300k, so do we use the equity in our home to fund our first deal either in part or completely rather than going with an HML or portfolio lender? Or pull some equity and combine with other financing?
What would you do? Any feedback would be greatly appreciated!
Thanks,
Howard and Heather Johnston