All Forum Posts by: Sean Harper

Yes, technically, you can sell with existing financing in place. The buyer's financing will wrap the existing debt (called underlying debt from that point forward). There are risks to be aware of such as a due on sale right held the underlying lender. Lots of disclosure needs to be given by you to your buyer.

But if you're up for being a landlord, maybe this is a fix-and-hold.

Is the HELOC against your primary residence?

Does it begin to amortize after 12 months? (usually something more like five years)

Will the total principal balance of the HELOC be $120K - $130K after renovations?

Does your projected cash flow include debt service and other expenses after the refinance?

Thank you!
--HELOC is against PRIMARY
---Rate is 6.95 first 12 months then prime +2 for a total of 10y, interest only, then amortized

--Total HELOC would be purchase price + Renovations (approx 120-130 total but who knows)

Projected cash flow is estimated without knowing specific extra costs. Rent in this market is predicted to continue to increase

Other option would be to Flip and Sell, but I speculate the market could really increase if I rent for 2-3 years before selling (including option of seller finance)

thanks for the help!!

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Interested

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Fayetteville, North Carolina

Thinking about making the first purchase:

roughly $90K sale price

Plan to purchases with 100% Home Equity Loan 7% interest only for 12 months

Invest $20-30K in renovations (using 7% interest loan)

Anticipated value $150K

Then Refinance $90K with conventional mortgage before the 12 months are up.

It will cash flow $300 /month based upon current market rentals.

Question: Could I also consider selling property where I finance? Would that make sense in this market? Is that even allowed if I have a mortgage? Any tax implications, etc?

Brand new to this process, thanks everyone!!

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All Forum Posts by: Sean Harper

Sean Harper has started 1 posts and replied 3 times.

Post: Newbie Financing Advice

Post: Looking for cash buyers in the Fayetteville, NC area!

Post: Newbie Financing Advice