First Live N' Flip for a New Real Estate Investor

[Ryan Hahn]

Hey everybody! I am brand new to the BiggerPockets forum, and to real estate investing. My wife I are a few weeks away form closing on our first live n' flip. We're buying a foreclosure that needs about 20-30k in repairs/upgrades, and if the property sales for the projected price (provided by our realtor) we stand to make about 20k. We plan on using our own money to make the property comfortable/livable (10k) then move in and do the rest of the repairs/upgrades over the year. For the remaining 10k-20k we plan on either getting a HELOC on our current house (which has about 20k in equity), or re-appraising the flip after the initial repairs and getting a HELOC on that one. I lean more towards the HELOC on the flip because the interest rate on our current house is so low I don't want to mess with it. If anyone sees any holes in my plans for financing i'd love to hear about them. I'm also curious how you guys set a repair budget. I have found that to be one the more difficult parts of this process.