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Updated over 8 years ago,
First Flip Near Complete. Need Advice
I purchased a single family home 1 year ago in July 2015 for 64k with a 15 year mortgage. I originally was just intending on fixing it up for my girlfriend and myself to live in and have a cheap monthly payment, but after a year and a complete rehab the market seems to have moved significantly in our favor making it tempting to sell. I believe my house is worth ~180k now. Recently I have set up my own LLC and am starting to try to figure out my game plan to scale my business into more flips. My issue is we have been living each month with little cash in the bank and would like to take some money out to pay down student loans and some cash in hand. What is the best way to do this with paying least in taxes and/or fees?
I need some advice on whether we should (1) sell the home, (2) do a cash out refinance, or (3) HELOC.
Purchase Price: 64k
Rehab: ~20k
Mortgage Balance: 57k
Closing Costs: 11k
Sale Price: 180K
Profit: 102k