House Flipping - Financing with Conventional Loan and P2P Lending

[Tim Porsche]

Hi All,

Here is my latest plan to raise the funds needed to start flipping houses in 2016. Please let me know if you think it will work or not. I will be buying houses that need work obviously, but not ones that need so much work that they are not livable. 

Example House Price: $50,000

Example Renovation Cost: $20,000

House Downpayment: 25%

Mortgage Interest Rate: 4.5%

Loan from Lending Club for $30,000 at 7% (in case it goes over budget)

Do you see any issues with this financing strategy, or do you think it would work out well? I'd prefer to stay away from hard money because of the high interest rates, but that is an option as well. Any advice is greatly appreciated.

Thanks!!