HELP NEEDED FOR HOUSE FLIP

[Nathan Wierzgac]

I have a house in Durham, NC that I rehabbed this year from January to June. I am all in on the house at $525,000 and have an appraisal on the property at $600,000. With rising interest rates I have not been able to sell the house without losing money on it and I'm looking at alternative solutions. I have attempted refinancing into a long term loan and leaving some money in the property in an effort to turn into a STR since it is in a prime location near Duke Hospital and downtown Durham. I can't qualify for that large of a loan unfortunately and am looking for other options to save this property before my hard money loan matures in February of 2023. There is $75,000 worth of equity with the appraisal in the property currently. Looking for genuine help on some alternative solutions on what I can do… thank you.

[Dan White]

I ran into a similar scenario for a STR we have currently. We bought it as a flip with hard money but it really worked better as a STR. The house has three separate entrances and 9 bedrooms total. Awesome! But, we were all in at 900k on a 1.15M appraisal. Both my flipping partner and I could have qualified as the note holders but decided to mitigate our risk by bringing on partners for an equity stake. We easily qualified between us and the partners and we got out of the hard money loan. So, while it sucks to give up some equity, it may be the best route to get out of the loan. Our partners paid for half of our costs of reno and half of the 40k needed to get the loan closed. So, out of pocket they paid for 50% of our costs for a 50% share. Worked out great so far - property is cash flowing nicely.