Approaching a Primary Residence like a flip...

[Jacob Forbis]

Hello folks, still new to the forums, so please let me know if this thread belongs in a different topic. My question is around purchasing my primary residence.

My fiance and I are getting married in October (woo hoo!) and when we do she will move in with my at my current house. My current plan is to shortly thereafter move out and rent it out. We would then look for somewhere else to live.

What seems to make sense to me is to approach this purchase as if it were a flip. Try to find something at 70% ARV after repairs, that way in a couple of years we could move again, roll over the equity in a new purchase and repeat the process.

Has anyone else done this? Does it make sense? Can I use a hard money loan to acquire the distressed property and to do the repairs and then refinance into a conventional loan?

Any thoughts on this strategy would be greatly appreciated.

[Jon Klaus]

"why won't a hard money lender loan to me if I plan on living there."

A lender has to meet a myriad of regulations and compliance issues on a loan to an owner occupant. A hard money lender will have to do gymnastics to comply. Likely they can't charge the points and rate they need.