Should I sell to have capital to flip or?

[Nick Reynolds]

Hi everyone,

My name is Nick. I'm new to this website but can see that the networking and information on this site can be very beneficial to all. I'm a 25 year old male from Rochester, Minnesota that is going to get into rehabbing, wholesaling, and other parts of real estate. 

Just over a year ago I purchased a HUD home here for 140K. I went with conventional lending and put 32k as my down payment. I've invested 18k in flooring, roof, trim, appliances, paint, drywall, and other things to get the home in good condition. My current loan amount is 108K and after adding in my cost in repairs I'm essentially 126K in. Just going off of recent comparable homes sales my house will pull anywhere from $225K to $250K in todays market. If I was to sell now that would make my capital to be in between $95K to $120K after the sale. I also don't want to pay any capital gains tax on the property either.

Since I want to get into rehabbing homes and maybe even possibly wholesaling. I feel like having those funds would allow me to do so. I recently reached out to my Lender (Wells Fargo) and was looking into a cash out refinance to get money to be able to have a down payment on another property or buy it for cash and potentially do a flip. Wells Fargo wasn't willing to give me enough to do so. Also, I recently started a new job and have less than a years history there so I feel like lending would be an issue if I was to go to another bank. 

I'm looking to see if their are any options out there that I may not know about and what someone who's experienced in this field would do in my situation. 

I know this area like the back of my hand and am willing to put in the legwork in order to find these homes that are in rough condition (40 to 80K) and get in contact with the owners and try to work something out where I can purchase and flip it or wholesale it.

Any and all responses are greatly appreciated. 

Thank you