All Forum Posts by: Andy Lu

Hi Bob and Robert, thank you for your valuable feedbacks. I know it's hard without a clear agreement on the contingency plan if in the case that we could sell the property as a flip back in 2007. I am treating this strictly business and want to be fair as possible. How would you guys value the credit I had to use to finance the loan for the property? Initially it was a quick flip I thought my credit will only be tied up for few months but now this end up to be 10 years.

In 2007, a partner and I decided to try flipping a house for quick profit (It was worst timing ever!)

At the time, the purchase price = 290k, rehab = 10k, and then thinking we can flip the house for 340k.

The house was solely under my name as my partner doesn't want to have his name on it at the time, thinking this will be a quick flip. The property was financed with hard money and my HELOC from my primary residence and we split the rehab cost.

The market tanked during the rehab time frame as we couldn't sell the house at all and underestimated how bad the market condition was (early 2008). So we decided to rent the place out. At the time, we were luckily enough to get HELOC on the property itself and that was able pay off the hard money and most of my HELOC from my primary residence.

Fast forward 10 year, we are selling the place as the property had climbed back up to ~360k.

So what will be cost for managing the property for the last 10 years and also the credit that I had to use as the property was solely under my name.

Thanks in advance for all the feedbacks!