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Updated over 7 years ago on . Most recent reply

User Stats

22
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4
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Matthew Cretzman
  • Flipper
  • Keller, TX
4
Votes |
22
Posts

Need advice on DFW, TX deal (flip to a rental??)

Matthew Cretzman
  • Flipper
  • Keller, TX
Posted
I just started work on a property in a very solid rental area in DFW and am thinking it may be better to refinance the property post-rehab and stick a renter in there... As a flip, I wouldn't net very much (maybe $10k with 45 day turnaround). But, I could rent it out and hit the "1% target." The deal is: $93k purchase $25k rehab Can sell fast for $130k Private lender gets 25% of net I know it's pretty slim but I'm just trying to do what I can to build some capital and eventually my rental portfolio. That's the end game. So, I've found I can acquire properties using private money (I have two excellent lenders with amazing rates), rehab, rent, refinance through a bank. My quandary is --- 1. Would a bank refinance the property with new renters? (if I had a good relationship with a small one, which I may.) 2. Would the private lender be turned off by my changing the game plan mid-rehab? (this is our first time working together.) 3. Would the property be refinanced at the same price I would/could sell the property? ($130k) My play, as I see it now, would look something like: 1. Finish rehab and refinance through the bank 2. Pay private lender off and give him his cut (25% net) 3. Put in a renter and hold the property indefinitely (for cash flow and equity) I can rent the property for $1300/month, and do that very quickly (within a week). Mortgage - $700/month Additional Expenses - $400?? Cash flow - $200?? My REI goal is simple -- replace my income with rental properties within the next 12-18 months ($4000/month). I guess the better question would be: what's the fastest way to do that??? Any wisdom on this deal would be greatly appreciated!

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