Updated over 5 years ago on . Most recent reply
Creative RE financing advice needed!
My LLC , basically my husband and myself, have been successfully flipping for a couple years using hard money. We have a property for sale now that we'd like to move into because we are renting where we live now and to avoid capital gains. The conventional mortgage requirement is 20% down but we also have back tax lien that we need to pay so total will leave us cash poor. Can the LLC use a hard money loan for rental ie. 30 yr 5/1 arm and my husband and I be the renters while we work on getting the back taxes paid rather than continuing to throw money out the window paying rent?
Or is there a better way to do this? We should be netting conservatively $76,000 on the project. So we could sell, pay off taxes, buy something less expensive with less down, live there and then rent it out after 2 years but then we’re paying income tax on the earnings of the flip which we need to pay taxes and down payment on the cheaper house we buy for ourselves. Taxes are a viscous circle! Appreciate any advice, help, creative solutions, thank you!