All Forum Posts by: Patrick Jung

In my area, I have seen successful flips from 2FAMs converted to a huge SFH. Since the typical single family house in the area doesn't have the square footage, they made a killing. It was a foreclosed up & down with about 1200sq ft per unit and when converted about 2500 sq ft.

They bought for 40k and sold it after complete rehab for like $355k.

You can purchase with a low down payment for example 5% with an FHA loan. The strategy I used for my first purchase is a small multi family and rent out the other unit.

@Jonathan Soto Thanks . yes at least 100 sounds like a good idea

@Josiah Kay Thanks for the input. I agree. Ive been aggressively paying down the mortgage for about 3 years. It had its benefits and since the prop value drastically increased it allowed me to take a nice heloc of 80k. Like yourself, I've redefined my goals and I want to build my portfolio by acquiring more doors.

What do you guys do with your positive cash flow? Do you put it towards the principal on mortgage or save to reinvest it?

@Ramin R kamal Buy an undervalued property. Look at comparables and recent sales to get an idea of how much a home will go for in that area.

How did you guys build your real estate portfolio?? I am very eager to get past the begining stage.. I started by house hacking a duplex in 2015 . Last year I took a HELOC since property values sky rocketed. Used some of the HELOC funds to buy a SF that needed some work in which I moved into for a live & flip. With intentions to live & flip I'm now thinking I want to hold this property. Debating on what my next move will be... Keep in mind I need a place to sleep too.. What do you guys think?

@Cathryn Stauffer I got funds to buy my 2nd property by taking out a home equity line of credit. You can do this if you have enough equity on your current property.

apply for a home equity line of credit.

Hi all,

I was hoping someone could give me some insight on some different options to fund homes to flip.

I would like to get an idea of the different approaches and your experiences on how it went.

Obviously it would be nice to have Walter White money and could buy in cash, but I don't so the following options are what I could think of... What do you guys think?

- Get a conventional mortgage with a 20-25% DP and buy a house as an investor. (are there any special circumstances to this? Hold period? Also, I feel like big name banks are really picky when it comes to approving loans for houses that need some work.)

- Hard money lender (don't know much about them.. kind of reminds me of a loan shark)

- Know somebody with a bunch of cash

- Home equity line of credit

- Maybe transfer funds from my 401k to a self directed IRA

Thanks in advance!