Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Creative Real Estate Financing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 11 years ago on . Most recent reply

User Stats

6
Posts
1
Votes
Eugene Angeloni
  • Glenside, PA
1
Votes |
6
Posts

Flipping a house then refinance the house and making a Rental Property

Eugene Angeloni
  • Glenside, PA
Posted

Hello BP,

I had this thought the other day and am not sure of its legal issues so I figured I would ask the BP community.

Say I find a house that I am planning on using private equity to purchase and fund the rehab, which lets say is gonna cost in total $90,000.

The house also happens to be in a great location for a rental property.

So as the house comes to completion I now realize that I would like to hold the property rather than sell it. Problem is I do not have $90,000 however my house has now been appraised at lets say $120,000.

Is it possible for me to get a mortgage/refinance the house?

Allowing me to take the $120,000 my house is worth to pay my rehab fees, $90,000, and pay the 10% due on the mortgage, $12,000 and keep the house.

Thus I have a quick profit of $18,000 while still keeping the property and using rental income to pay of my mortgage, thus building longer term wealth.

Most Popular Reply

User Stats

13,324
Posts
3,945
Votes
Brandon Turner
#3 Questions About BiggerPockets & Official Site Announcements Contributor
  • Investor
  • Maui, HI
3,945
Votes |
13,324
Posts
Brandon Turner
#3 Questions About BiggerPockets & Official Site Announcements Contributor
  • Investor
  • Maui, HI
Replied

I agree with what Matt said. I've done this strategy a number of times, and yeah, 80% is the best I've seen. It is a great way to get a rental property with no money down but it can be a lot of work. Good luck!

  • Brandon Turner
  • Podcast Guest on Show #92
  • Loading replies...