All Forum Posts by: Tim Anderson

Doesn't that take a lot of time, marketing and money... just to find the private money?

I'm actually doing it with my primary residence, so there would be a good deal of risk, if I wasn't confident about being able to make the payments and sell the home. The home still has about $28,000 left on the mortgage, the bank estimated the house being worth 98k.

Private financing requires much more effort to get, it seems like. I'm not exactly the most charismatic person, either. The rate I'm getting is almost guaranteed to be better as well. It's at 4%/20yr at the moment. The prepayment penalty is under $500. I understand that the HELOC comes with the risk of losing both homes if I can't make payments, but I'm pretty confident I will be able to, if not 100% sure. I was mainly just wondering if the interest-only option HELOC would be best or not in this situation.

I've decided to get a HELOC for my first flip. House I'm looking at is 70k ARV, 33k list, 3-5k repairs. You could really get away with doing nothing, but I'd like to do some light staging and minor repairs. HELOC is in the amount of 55k, I have 10k in reserves. Knowing this, is interest-only HELOC the best to get for a flip when getting this HELOC?

Also, figured I'd ask this so I don't create another thread. The list is with fannie mae, so the first 15 days is owner-occupant only. I'm nearly certain someone will get this house during that period. How long would I have to hold the house(Ohio), if I were to buy as owner occupant?