Creative Real Estate Financing
Market News & Data
General Info
Real Estate Strategies
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/hospitable-deef083b895516ce26951b0ca48cf8f170861d742d4a4cb6cf5d19396b5eaac6.png)
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/equity_trust-2bcce80d03411a9e99a3cbcf4201c034562e18a3fc6eecd3fd22ecd5350c3aa5.avif)
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/equity_1031_exchange-96bbcda3f8ad2d724c0ac759709c7e295979badd52e428240d6eaad5c8eff385.avif)
Real Estate Classifieds
Reviews & Feedback
Updated over 11 years ago on . Most recent reply
![Eugene Angeloni's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/134941/1694919856-avatar-eugenea.jpg?twic=v1/output=image/cover=128x128&v=2)
Flipping a house then refinance the house and making a Rental Property
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
![Brandon Turner's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/33644/1621366624-avatar-brandonatbp.jpg?twic=v1/output=image/crop=780x780@38x0/cover=128x128&v=2)
- Investor
- Maui, HI
- 3,945
- Votes |
- 13,324
- Posts
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!