Reply to Buying $325k home on $100k HHI, for potential profit on sale in a few years (not in DC)

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Reply to "Buying $325k home on $100k HHI, for potential profit on sale in a few years (not in DC)"

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[quote=Anonymous][quote=Anonymous]How are you going to get the cash to do the renovation?  The bank won't loan you money in excess of the home's value.  Even if you get a deal on the property its unlikely you'll get an appraisal for significantly higher than your purchase price.[/quote]

[quote=Anonymous]If it isn't livable now, check into how you will get a mortgage. Sounds like you are going from easy to huge project without the cash. Yes, the real estate market may take a hit from rising rates in the next few years.[/quote]

OP will have to get an FHA 203K or a FannieMae Homestyle construction loan. As someone who has done this and is still not quite at the end of it almost two years later,[b] I would NOT recommend it.[/b] We bought for less than $200K and will sell for almost $500K so we will still have plenty of profit, but getting and dealing with the construction loan has been horrifying, the project has taken forever, and our partners in the deal - experienced flippers themselves - are on the verge of divorce and our contractor won't speak to the wife. [/quote]

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