I have a lot in a nice community in Gouldsborough that I have not been able to sell.

Is your client building to rent, or build to sell? 

Back then, the market was more stable, interest rates were below 4.5%, and distressed properties sold at significant discounts.Today, distressed properties often sell at a premium, and cash-out refinance rates are above 8%.The best BRRRR deal I can find today involves buying a property with cash, investing in the rehab with cash, pulling out 75% of the ARV and breaking even on rent and mortgage.

Given your assumptions, you are not going to be able to get enough of a loan to fully cover the rehab, even with a hard money loan, so you'll need to pull in cash from elsewhere.One possibility is to have your mom sell you the house with a personal loan, not one attached to the property. 

My plan is to buy a new house and rent my current residence out and then "sell up" into a larger property to get my start. 

In 2024, 47% failed to sell even 1 house.

Another option is to sell one or two of them to pay off your LOC and then keep just one.

The lender does charge the flipper 4 points upfront, and the note represents 55% of the property’s ARV, so I’m not too worried about needing to foreclose if it comes to that.The lender uses his own capital for initial funding and then sells off the notes after that.

At the time, PPR was selling courses for investing in distressed 2nd mortgages.

Here’s why this market is so ripe:1️⃣ Mom-and-Pop Sell-Offs at Huge DiscountsA lot of these properties have been in the same family for decades, but now the kids aren’t interested in taking over the business or the real estate.