This may or may not be the place to post this but since it is my first post here we go!
First a bit of a background story before I ask my question. I was able to purchase my first home that needed work. I was able to purchase the house for $62,500 with closing cost included in the price. A lot of this was possible thanks to a great real-estate agent I used. He saved me $20,000 on the house and the local back was going to let me to an in house loan to do repairs and i had to put 20% down. Agent was able to change it to 10% as he knew the management there.
After a year of working on it bit by bit I was able to get the house how I wanted it. House appraised for $125,000 and I put about 20K into repairs, upgrades, appliances, etc. 18 months later I have been paying $300.00 extra a month towards principal and I now own $56,000 on the loan. And that brings me to where I am now.
Things went great with the house and I would now like to try to do a fix and flip using the equity in my house (HELOC) So my thoughts are getting that set up, seeing what places I can find or my agent can show me and if the right place comes along try to do it all again. I still have a good relationship with the bank so if they allow me to do the 10% down then I believe my HELOC would be able to cover that along with the repairs. In this case I would be hiring people to do the work on the house instead of myself as it can get done quicker and I won't get burnt on working on it every day after work. I do know a good painter, electrician, flooring, and for the things needed for people i do no know I do know a good contractor that I can trust.
If this works out I do not have crazy dreams of making a ton of money when it would sell. I intend to use this first attempt as more of a learning experience. If I could profit $10,000 off of this first attempt after paying everything then, I would call that a success.
Sorry this is so long but I figure it would help with getting an answer. Any advice would be appreciated. Thanks.
