HELOC or Wholesale under 50k min for BRRR

[Ryan Rodgers]

Hey everyone. This is my first deal so I really don't want to screw up. Hoping for some guidance.

I recently bought a home with cash in July for 13,500. Rehab will be 10k. ARV is 45k. Will rent for 800.

I was offered 24,000 from another investor after I bought the house. I could have turned it over to him..made the profit and be done, but feel that I got a really good deal with a huge ROI considering the rents for the future, so I declined. As of now all the money I have in is the initial 13,500.

When going to refinance at the bank I was told that the minimum they could do a refinance loan for is 50k. 80% of 45k ARV is only 36,000. I could do a HELOC but the rate goes from 2.9 the first 6 months up to almost 8%. I don't want to be stuck in this loan the entire time holding the property. So what do I do?

Should I wholesale it, take the money and get into a home where the 80% LTV is above 50k, or should I keep the deal and rent it?

C neighborhood. Own another property across the street.

Thanks! 

[Michael Anderson]

@Ryan Rodgers the key here is to keep trying the banks, it may take a little time but if you stick to your guns of buy and holding you may have to look at mortgage brokers/banker as an alternative to conventional banking, gulf coast bank could be a great place to start, keep envesting/investing my redstick neighbor, keep posting but most of all keep sharing