Please help - advice needed to complete two flip properties.

[Chris Garnes]

We have two flip homes and are possibly looking for investors, or to get a loan. I am not sure which is best for our situation or what to pitch. We are experienced and have never involved anyone in our projects and have never used a loan outside of a conventional mortgage. BUT, I am sick living in construction and would like to move to a new home and then finish fliping and sell or hold the two homes asap. Perferably sell one, hold the other.

Home 1: No mortgage. Currently down to studs with plumbing going in. The new design takes the home from a 3 bed, 2 bath to a 4 bed, 3 bath, 2,400 sq ft rambler on a large lot in highly desired area. Estimated cost for remaining changes (all new electric, drywall, tile, fixtures, cabinets, roof, doors, windows, heat pump, some siding, and fencing. HVAC is good) ~$90k. I am a professional cabinet maker and my father is a master plumber.

Estimated sale price once complete $500k+

Home 2: 210k mortgage. 5 bed, 3 bath redesigned to 5 bed, 4 bath, 3,000 sq ft. Needs all new cabintry, windows, doors, roof (has some life left), fixtures, fencing, some electrical and plumbing changes, and some framing/drywall due to termite damaged sill plate in areas. This is our current residence.

Estimated sale price once complete $600k+

What would you do? I'd like to keep savings and be able to hire out some of the work (something we have not done in the past).

My thoughts are to put both into an LLC and look for investors or a business loan, and purchase and move to a new home. Have both homes completed and sold in less than a year.. and then we need a break from all the construction!

Any advice or ideas would so appreaciated!

[Mike Fingleton]

Hey @Chris Garnes

I just came across your post, and it immediately reminded me of a project I handled with a colleague in San Diego, Dennis Bragg - https://www.biggerpockets.com/business/page/3607  - You’re sitting on some serious potential with these two properties, and your plan to step back from construction while finishing them makes total sense.

For Home 1, with no mortgage and a prime design upgrade underway, you’ve got flexibility that most investors would envy. A 4-bed, 3-bath rambler with a large lot in a high-demand area is bound to attract buyers. From what I’ve read in The Economist, short-term construction loans or hard money financing could be a great fit to cover the $90K needed. These loans are quick and align well with your goal of selling within the year...just watch for carrying costs.

For Home 2, the $210K mortgage complicates things a bit, but it's not a dealbreaker. If you're planning to hold this property, a HELOC or cash-out refinance might be the way to go, keeping your savings intact. If selling is your priority, focusing on completing this one first could unlock the equity you need for the next steps.

Your idea of forming an LLC is smart, especially if you're considering investors. From what I've heard, private lenders or small groups often jump at projects like this when presented with clear ROI. Your background gives you a unique edge in making that pitch. Transparency is key- detailed budgets, timelines, and exit strategies will set you apart.

That said, moving to a new home mid-project could add a lot of stress. A colleague of mine faced a similar situation, and their solutio was to sell one property early. This freed up resources and allowed them to fully focus on the second. It worked out beautifully... they met their deadlines and profit goals and had the break they needed.

Perhaps selling one property sooner is the solution? What’s your take on how current market trends could impact your decision to hold versus sell?