All Forum Posts by: Nick Reynolds

@Marc Jolicoeur  @Dan Vleck Thanks for taking time to respond. Greatly appreciated.

You are only able to buy a HUD home every two years from what I read not too long ago. I reached out to a local bank and they said the would be willing to do a HELOC up to 90K. I've done some reading and think this would be the best route for me. I don't want to sell my house that I'm in now because I'm getting positive cashflow with two roommates. Going this route I realize i'll be putting my main residence at risk. In a market like the one I am i feel as tho that risk is reduced. I'll look into getting the loan process started this week. My plan is to find a motivated seller with a house here in my town in the 30-40K range and do a fix-n-flip. Or another option would be to find a house in the 120-160K range well below market value needing repairs and use the HELOC funds for the down payment and the repair cost.

Hi everyone,

My name is Nick. I'm new to this website but can see that the networking and information on this site can be very beneficial to all. I'm a 25 year old male from Rochester, Minnesota that is going to get into rehabbing, wholesaling, and other parts of real estate. 

Just over a year ago I purchased a HUD home here for 140K. I went with conventional lending and put 32k as my down payment. I've invested 18k in flooring, roof, trim, appliances, paint, drywall, and other things to get the home in good condition. My current loan amount is 108K and after adding in my cost in repairs I'm essentially 126K in. Just going off of recent comparable homes sales my house will pull anywhere from $225K to $250K in todays market. If I was to sell now that would make my capital to be in between $95K to $120K after the sale. I also don't want to pay any capital gains tax on the property either.

Since I want to get into rehabbing homes and maybe even possibly wholesaling. I feel like having those funds would allow me to do so. I recently reached out to my Lender (Wells Fargo) and was looking into a cash out refinance to get money to be able to have a down payment on another property or buy it for cash and potentially do a flip. Wells Fargo wasn't willing to give me enough to do so. Also, I recently started a new job and have less than a years history there so I feel like lending would be an issue if I was to go to another bank. 

I'm looking to see if their are any options out there that I may not know about and what someone who's experienced in this field would do in my situation. 

I know this area like the back of my hand and am willing to put in the legwork in order to find these homes that are in rough condition (40 to 80K) and get in contact with the owners and try to work something out where I can purchase and flip it or wholesale it.

Any and all responses are greatly appreciated. 

Thank you