All Forum Posts by: Ken Howard

@Ken Howard

The rest of it past "I get get a loan" is frou-frou.

Spend the next few years living in the property, rebuilding your credit, paying off the mortgage, making important decision about your personal finance.

And then...go as hard as you can.

If you try to make moves right now, with the money habits that put you in this position, you'll end up like every other chump out there who tries this in half-a**ed way, just deeper in debt with nothing to show for it.

shop a few hml’s, if this is your primary, some wont touch it. we don’t loan on primary residences. credit aside, there is value in the house. the rate would be determined by your experience and credit. do you have anyone with better credit ready to jump into the flip with you?

that, or sell it as is an pay off your debt before going all in on investing in real estate. 

If there is room to pay a lender back with a refi after rehabbing I would def look into getting a renter in it and keeping it, taking any cash leftover and invest in something else. If the numbers workout you can find lenders that will pay for the rehab but you may not be able to escape the high interest due to credit and experience. But that's ok if the numbers still workout when analyzing. You maybe be able to get around at least 195k (75% ARV) out with a refi if the lender's appraiser agrees its worth 260k. Subtract closing, mortgage, lender, and rehab costs to get an idea of what you'll have left over. Keep calling community banks that will work with your credit situation on the refi, raise private or hard money for the rehab (get fees associated upfront so you can calc.) and reach out to other investors in the area that can help guide you through the process for a share of the take home after refi.

Seek to Serve or Pay to Play

Good Luck!!

First, welcome to BP and thanks for posting!

Second, if the property is in a "prime location" in Pittsburgh, why would you have to put $80k into it before renting or selling??? You're living there, right? That's clear proof that it's habitable and could be rented or sold, particularly in a strong market like we have today. If you dump $80,000 into it, that doesn't mean you'll increase the price $80,000. In fact, you may only get a 60% return on your money. You are usually better off selling it below market but still for a good price.

I would start by focusing on your personal finances. Get your budget in order, learn to save, and fix your credit. Once you've demonstrated you can do that, sell the property and use the money to start investing. This also gives you plenty of time to educate yourself on real estate investing before you jump in.