Needing analysis help and some q's about flipping

[Taylor White]

Hey there, I’m relatively new to BP and this is my first post! I’m interested in doing a flip (or multiple flips) to fund more buy and holds. I currently own 1 rental property, but am hoping to expand to 5+ in the next couple years.

Since I am low on capital of my own, I’m planning on bringing on private investors to fund any flips that I do and I wanted to put some numbers up to get some help with analytics. I want to make sure I’m not missing anything important. I also have some questions about taxes and exit strategies. I'll post my spreadsheet at the bottom. Here are all of the questions I have at the moment.

1) If I complete this flip within a year, is capital gains tax a concern? Or will I just have to pay my regular income tax rate on the profits?

2) The only 2 exit strategies that I am aware of are selling the property for enough to cover my investors, or refinancing the property myself and holding it as a rental. What are some other exit strategies?

3) How does refinancing work in this situation? I would have purchased the property in cash using my investors capital...would I then refinance and be able to use the profits to cover my investors AND my down payment on the mortgage?

Here is my analysis with rough estimates on the rehab costs...

[Zack Leverette]

Do you have enough equity in your primary residence to obtain a HELOC? Our first flip was suppose to be a buy and hold but the market was so high it was better to rehab and sell. We got a conventional loan and used funds from a HELOC and a no interest CC to fund down payment and reno.