Rehabber's How long before you Refi?
I am going to be ready to list my 1st FLIP fairly soon. However, as an exit strategy, I am going to refi if I cannot sell the home in a timely fashion and pull my $ back out so I can do it all over again. So the question remains how long do you guys typically wait before you pull it off the market and refi for those that employ a similar strategy? Thanks for stopping in and sharing your thoughts. Here is to wishing you all a successful 2017 in your REI ventures!
Most Popular Reply
If I understand you correctly, you are going to flip the house, you paid cash for it and have no liens against it, with the expectation to sell it for profit in a timely fashion. But you have concerns that if it does not sell quick enough, you plan to cash out refi it so you can jump to the next one. Correct?
For me, such a back up strategy is never in my aresenol and here is why: I either get more capital from my private investors for the next one or I drop the price so it sells quicker. If any property I own does not go under contract in the first 30 Days, that tells me i overpriced it because it can not be due to poor quality (I just don’t do that) and price conquers just about everything in real estate. Opportunity costs end up being more than taking less profit or trying to wait out time. Just my opinion based on my business model and my past history.