Very new to purchasing real estate

[Mark Miller]

I am a wholesaler, but two properties came my way that I have no intent of assigning, as I think it's time to build my portfolio.  Both properties are next to each other, one is a duplex, the other a Single Family home.  I can purchase both properties for $60,000.  The Duplex alone is worth $78,000 and the Single family worth $22,000.  Both need cosmetic work and minor repairs.  I am not a do it myself type, so I plan to pay to get everything fixed out of pocket.  Couldn't I just refinance right away and get all that missing equity back?  Then use that money to fund the repairs?  I am not familiar with refinancing, and apparently most refinancing calculators aren't designed for investors.

[Jaysen Medhurst]

@Mark Miller, if you pay cash, you can probably get a mortgage for 75% of the purchase price and use that for the renovations. To keep borrowing costs down, it may be worth doing a HELOC and then putting long-term debt in place after 6 months (the standard seasoning period). At that point you should be able to get 75% of the new appraisal.

This is a pretty small loan amount. Makes sure you talk with some local banks to see who will actually write a mortgage this small.

[Mark Miller]

@Jaysen Medhurst so, thank you for the information. Are you saying that I should basically do a fix and flip loan then convert it to long term be lending using a refinance or helix?

[Jaysen Medhurst]

Yeah, @Mark Miller. This is the BRRRR method.

[Noah Mccurley]

@Mark Miller

These deals seem too go to pass up. I would try and get these any way you can.

[Noah Mccurley]

@Mark Miller

There may be a time built into the mortgage meaning you cannot refinance for maybe 6months, a year etc