Aborting a hard money fix & flip for a refi and live-in rental

[Robert Alexis]

Newbie investor looking for advice. Purchased a foreclosed property with $549k and 10% down through a hard money loan for an initial fix and flip. With the current market, I'm considering changing my exit strategy and refinancing after the rehab is complete so I can live in one unit and rent out the rest of the home. ARV is about 860,000 and I'll have to pay the HML 644k to cover the remaining loan plus rehab costs that they're covering.

Will I be able to refinance so I can pay off the HML and switch to a conventional mortgage? If so, how does this work and how much should I expect to spend?

[Ash Hegde]

Since you own the property, yes when it's rehabbed and appraises at the new number you will have equity equal to the appraisal value less whatever you owe the HML. Based on your numbers, if you refi at 80% (688k loan) you'd only be in about 11k of your own cash with 172k of equity.