Another Newbie 😁 Charleston SC

[John Graves]

     What up people’s and mutual, well, whatever you identify as! I’m Johnny. The internet eventually let me here after looking around at property management/investment ideas. 

I purchased my house via FHA and like 6k down (3%ish) about 5 years ago @ 144k total loan 3.625% interest. Fast forward to today and my value is 100k + without rehab. I'm at 129k owed. Pmi forever until I refi.

     It’s an older house. 68 on the bottom and 86 for the 2ed story. 5 bed, 2 bath .47 acre on the lot size. 

      Sooo without going into too much I’m finalizing my divorce. No alamoney, no kids, house is mine (already signed agreement). Quit drinking about a year ago and decided to get my **** in gear. It’s going well.

      Here’s my rough plan, just seeing if there’s anything I’m overlooking or there’s a better way to go about it. 

HELOC for 30-40k. Rehab the house, probably cost around 20 total after the roof which Has to be done. I can do a lot of the labor myself so 20 is generous but 30 available to be safe.

     I said a heloc of 40k because I have a 10k judgement against the house via my X and some life decisions. So I have to pay that off before I can refi. 

     Rehab is going to be bathrooms, roof, landscaping,  air sealing, windows (little by little diy and budget allowing), fixtures and switches, probably cellulose insulation in attic, odds and ends.

     Do that, reappraisal for somewhere in the 250...mmmaybbee 300 range as I have one of the only real 5 bed houses in the entire area (6 only are Comparable).

Thennnn refi the heloc (which pays off the 10k judgement) into the loan and cash out. Buy another with a large down payment and rehab money. Repeat the BRRRR.

Also I typed this on my phone so forgive any weirdness I didn’t correct