Equity in a property youre purchasing and using it as downpayment

[Chris F.]

Hi BP, first time poster, long time reader. I've searched through forums, but I've been unable to find any answers to my specific question. Briefly… I have a part time business flipping houses, along with a regular career and family. The day to day of managing crews, as I've found unreliable GC's, finding properties, research, driving around, etc. is daunting and takes away from my career and my family, as well as adds a ton of stress. I currently own one two family which was my first home purchase and may only have about $35k usable equity in it for a potential HELOC. My wife and I have since purchase a single family which we now live in, renting out the two family and cash flowing. My goal is to acquire other multi-family houses and get out of the flipping SF's. In order for me to acquire these flip houses in an aggressive market, I have used hard money each time. My question is, could I acquire a multi-family house using HM, renovate it, then "sell" the property to me and use the equity build it (would be profit if I were to sell to another investor) as my 20-25% down payment, assuming there is that much built in? I've been quickly told no by conventional lenders, however, so much that is posted on BP is so incredible and creative when it comes to non-conventional ways of financing or acquiring properties. I'm looking to do this fast, and acquire more, as the health requirements of my wife (37yrs old), are reluctantly forcing her out of the workforce.

Any direction is greatly appreciated, but I also understand that there are many roadblocks along the way.

[Chris Mason]

Hi Chris,

No, you cannot buy a house from yourself.

After six months, however, you can cash out refinance the property using then-current appraised value.