First flip. Exit strategy?

[Oscar Macal]

Hi guys,

I currently have my first flip on the market to sell that I bought a couple months ago. However, I have a question and hoping someone can help.

I unfortunately am not going to make much, if any, money on this home. The repairs went way higher than expected, and assuming it sold today and closed in approximately a month, I'd make about $4k. Therefore, not wanting to take the risk that it doesn't sell soon and having to extend a hard money loan (which as you all know if extremely expensive) come March, I'm considering keeping the home and either moving in myself or renting it out. However, all my liquid funds are tied into it and I'd like to tap into those to get rolling on another project and then sell the home in a year or two when it has gone up in value a bit more. 

The question is, could I cash out refinance it in order to get my liquid funds out of the property? Are there any "seasoning" requirements that would prevent me from doing this?

Thanks for your help and advice.

Oscar

[Theo Hicks]

@James Stevens exactly.

Also, if you plan on living in it, you should be able to refinance into a FHA loan which is only 3.5% down, so that should allow you to get the money back out.

Not sure if you have heard about the BRRRR strategy, but what you are trying to do seems along those lines. I would search BRRRR in the forums as well as pick up @Brandon Turner's new book "The Book on Rental Property Investing" because he discusses this strategy in detail!