Help with ideas on strategies

[Bill Kramer]

Ok, I'm gonna start asking questions.

2 years ago I rehabbed a house by bosse high school  (Washington and 41, east side of 41). 

700 sqft 2 bedroom 1 bath 

Repairs came to roughly $30k (strip to studs, all new everything plumbing/wiring/drywall/roof/windows/etc...)

Assessors site values it at $49k. Currently rents for $700/month. That's my comparitive house.

I can pickup a clone a block away on the same street for $7k but it will need the same extensive remodel.  I can definitely drive the remodel costs down to around  $20k.

Do I rent or flip? 

The 6 months I was working on the comp house, I paid attention to the quality of the neighborhood and even stayed late a few nights to get an honest feel for it.  It's a quiet street, unbelievably.

If I go for the flip, I would try to push it for $60k. I am thinking pay cash for the place, pull a loan for the rehab.

This site has given me so many ideas, and so many strategies it can be hard to narrow down what to do.

Is there any good websites to get home values from? I've read that you can't trust zillow to much, and neither the assessors site.

[Dalton Dellinger]

Originally posted by @Bill Kramer:

I've definitely been entertaining that strategy. But doesn't that require a 1 year seasoning before you refinance? Would it be faster to get a heloc?

Which would get me access to cash faster? I want to do at least 3 deals in my first year.

I am not sure if they would lend all the way in Evansville, but I have made contact with a bank in Vincennes, IN that will send an appraiser out oce renovations are complete and allow you to put a line of credit on a house at 65% LTV with no seasoning period. This can be transformed into a higher LTV once their 6 month seasoning period is up.

To me, this is a great strategy to do your first couple of deals as long as there is a high enough margin. There is also no limit on the number of lines you can have because they do not sell their loans or lines to Fannie Mae or Freddie Mac. Maybe there is a local bank in Evansville offering this kind of program? 

Have you tried Field and Main? They are very investor friendly. They will do a loan for purchase and renovations up to 80% LTV if your credit score is above 680. I don't remember if they had a down payment amount or not. Just some thoughts!

Good luck and happy investing!