Should we use our cash or get a loan to finance a flip?

[Jordan DeGusipe]

Hey guys!

26 year old first time flippers here.

We recently acquired a home for an amazing deal. Property has over 20k in judgements against it and needs a good 20k worth of work, but is worth close to 130k right now, it will be worth 170k-180k once its rehabbed. We bought it for 20k plus are paying off his judgements, which brings the TOTAL, without rehab, we are paying to around 55k-65k upfront plus HOA fees, taxes, etc.

The property has the following stats:

Worth 170-180k flippped.

-20k in judgements due

-15k mortgage needs paid off

-20k to homeowner

-1,550 annually to the association for 10 years (need to check on this)

-HOA fees yearly of $665

ANYWHO. We have the cash to do this, but should we get a loan through the bank to flip the house? Or pay the repairs in cash to avoid the interest fees?

No matter how you look at it, we are looking to make atleast 30k-40k profit guaranteed, I would say.

Thank you!

[Uriah D.]

I would sell it as-is for 130 NOW. You'll spend the 20-25 in rehab and make the same amount, but you will have 2-3 months of work and finish up in the middle of winter. Also, don't do loans unless you have to, especially when starting out. Once you have a few under your belt get loans to help you do more.