Anyone have experience flipping a house? Curious to know your strategy in financing the property to maximize the profit (e.g. FHA 203k loan).

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Bought cash and rented after flipping. 14% ROI - take a loan against it, rinse and repeat

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Hi!! Thats so awesome, i am just getting into REI myself. Ive been using biggerpockets.com and listening to their podcasts. Very very informative community. Good luck!

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Remember from your MBA that financing and investment decisions are separate.

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Where did you buy a house in cash? Somewhere rural? Do you have a property manager?

I used a VA 0% down loan with cash out option, had a general contractor I trusted, and added size with renovations. Lived there just long enough to get the primary occupancy interest rate. With nothing down, my ROI was in the 100K% range - effectively trading real estate on margin.

You need to have a great financing strategy, identify a neighborhood with low entry price and high ceiling, know the market, and have a strategy for low cost construction.

Mine was in the D.C. Suburbs. There I was able to get low cost contracting from the surrounding rural areas but still have premium buyers willing to pay for luxury.

You're going to want reasonable cap rates that aren't crazy expensive. Find the right area. I property managers are good if you have a portfolio, but if it's your first property I can't imagine you'd really need one (so far as the house is in good condition and most issues are just a phone call away anyway). MULTIFAMILY=the real $. Borrowing against tax deferred is always preferable. Take a 30 year mortgage. Rule of thumb: multiply market rent by .65 then subtract mortgage with 0% down--see where you stand cash flow wise from there (obviously this isn't a real situation, it's to assess). You want to be positive and then a little.

Cash house was in Texas. If you need a loan, run the finances first. Advice in this thread is solid

This would be my first house. I have around 50k liquid so I can't do a cash house option. I know cheap contractors and my plan is to flip the house in 6 months or less but I need to figure out my finance strategy in terms of which loan options are available to me.

Or rather, which loan option is best to realize a higher margin. @PwC2 im not a vet so i can't do a VA loan

Finance strategy is just numbers. Debt or equity (if you can find investors). Treat it as you would any business case. Lowest possible IR would be a personal mortgage, if you can live in the house. IR for investment properties are slightly higher

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