All Forum Posts by: Kaitlyn Summers

Thanks everyone for the advice!  We have moved some of the numbers around and will be pursuing a gift of equity and a smaller loan.  

Hello,

Looking to purchase my first home as a live in flip and could use some advice!

Private sale from family member at 510000. Reno 50000. Plan to live in the house at least 2 years to avoid capital gains. ARV 600000. This doesn't seem like much of a deal when you consider closing costs now and holding/selling costs in 2 years. The reason I like the deal is the seller is willing to accept a mortgage of 550000 and give me the 40000 in cash for closing and initial renovations. The seller would spend close to that on basic fixs and relator fees. The house is also in a very desirable area (Davidsonville, MD) and the ARV could increase.

What do you think? What am I not factoring in? Is this a no brainer? Nervous about pulling the trigger on such an expensive first time buy.

Thanks!

Kaitlyn