Home loan after 6 months

[Anthony Rea]

Ok, So I'm new to bigger pockets and new to 2nd home purchasing. My situation and questions are these. I have Horrible credit (580) and just finished going through a long ( 2 year long) home loan modification, mod was finally approved and finalized last month.   Last year I came into some money and decided to buy a fixer upper in the State of PA, since I live in NYC I saw prices in that state were really low. I purchased, cash, a small 2 bedroom bungalow in Dingmans Ferry PA for 13,500.  Comparable sales in the neighborhood are selling for no less than 60k and they go as high as 200,000. I closed in November of 2016 and from my understanding I can borrow 70 percent of 13,500 if its before 6 months, but if it's after I can borrow more (depending on appraised value of course).

Should I seek a HELOC after 6 months? Or what other options are there?  I'd Like to cash out about 30 to 40K,  after I made much needed repairs I believe house is worth at least 60k. I feel I can purchase another property cash again and flip the next one as I plan on keeping this one. Would I qualify, in other words will banks even touch me with a 10 foot pole (dismissed bankruptcy, Collections, chargeoffs) Or should I (hear me out here) Sell this property (wink wink) to a well qualified person of my choosing, and use the proceeds of the sale to flip my next property.   The person who I sell to would hold the mortgage until I decide (me making payments of course).   Or would closing cost kill any future proceeds? Or just stick my head in the sand and be happy with my purchase already?   (BTW, my first mortgage is a 1 bedrooom condo in Queens that was under water when I first started my mod. but has since balloned to bing +50,000 in equity with rising home prices). Again any information would be helpful.