Hey Biggerpockets! We bought a house too high before the housing market cooled off and we're wanting to simply do a quick flip with a thinner margin than usual. We usually do more involved flips so this isn't normal for us. Anyway, 1 month in, our renovation costs were double what we originally estimated and we simply just had to finish the project and get it onto the market. Now were 6 weeks on the market with no offers and very few showings like a lot of other houses out there. SO, we are here looking for exit strategies that prevent us taking a loss on this one, so here's all of the details.

Purchase price: $280K

Renovation costs: $46K

Our original ARV: $375K

Financing: Bought in cash using family money, renovation financed half in cash, half from a short term loan from another family member ($25K at 5%). We borrowed the cash to purchase the home at no cost, but of course the family wants their money back. The short term loan is very flexible, but still needs to be paid back by the end of this year. So we're blessed to have this flexibility, but people want their money back bottomline.

So far we have run the numbers on a BRRRR and they haven't been great with the best conventional 30yr mortgage offering being: Cash out ~$246K, closing costs ~$15K and monthly payment $1,997 (at 6.5% buying down points). We would have at the highest, $195/month cash flow from the home. We are trying to sell the idea to the family member who let us borrow the cash to purchase the home that we can get them a positive cash flow on the property and transfer ownership of the home for the refinance and our LLC would just take a percentage of the cash flow to cover the costs of managing the rental ourselves. This is definitely not ideal, because they would have 25% equity tied up in the property and we have no idea if this property will even appraise for 350K which is the estimate we told the lender to get these numbers. We are aware of the mistakes we have made so far have definitely learned to buy smarter at this point. We just want some advice on options to exit this deal.

Atlanta, Georgia

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