We're new to Bigger Pockets and we are so excited to be here. But we are struggling with the overwhelm of possibility and a lack of banking knowledge. We purchased a home last Feb from a family friend. We closed on a 15 year 2% mortgage @$200,000 in portage park. We own a 4 br 1 ba home with a full unfinished basement. We are trying to decide whether to take what equity we have instantly, to rehab and flip as fast as possible, or to fix minimally and rent it out as rent in the city is at a premium. Our mortgage is about $2300/mo and we pay our taxes into an escrow account. The house was assessed at $360,000 as is but newer/rehabbed homes in our area are going for almost $600-700,000
Background: We're both self employed. I own a painting and drywall company and my partner a salon. This makes applying for loans and credit very difficult and more than frustrating for banks, because we file separately and are not married. We've also both come across difficult times in this current economy.
We are considering a refinance...... I know I know. But if we shift our mortgage to a 30 year on the $173,000 we have left it could save us $1000/mo to put into renovations or back in our pockets.
We don't know if we should flip, fix and rent, use a heloc on a flip and buy...... we really don't know where to begin when we begin. We're signed up for a bootcamp with real estate rookies this summer but we would at least like to come to the table with something. Thoughts are welcome.
