My first house flip

[Daniel Adams]

I am looking to purchase a live in flip within the next 6 months. I plan to use a 203K loan. Any tips or things I should know before I get started?

Thanks

[Russell Brazil]

@Daniel Adams One thing to keep in mind with the 203k loan is the way that the money is handled for the renovations and that it is paid directly to the contractors, and all the associated restrictions.  Due to this, the 203k loan may not be that great of a product for a live in flip.  Most people when they say they want to do a live in flip envision themselves fixing up the property slowly over the course of time.  In order for you to do your own work on a 203k, you have to show I believe "professional expertise" in renovations....essentially you need to be a licensed tradesman.

Also the renovations have to be finished within 6 months, which most live in flip people are exceeding that time frame since they are usually doing the work themselves.