If I start flipping houses by using 203k loans, how long will it take before I can use other types of financing?
I plan to keep putting the profits back into the business. I understand that you need to own the house for a year under a 203k loan. I have $25k saved up already. I’m guessing I can profit $15k with each 203k fixer upper.
I’m planning on living in the house for 1 year
- realtor.sailorLv 72 months agoFavorite Answer
FHA requires the buyer to live in the house 1 year.
- martinLv 72 months ago
If you do the fix-up yourself, you will come out ahead. Conservative lenders won't like what you're doing, neither will local politicians.
- A HunchLv 72 months ago
I'm guessing that you can't.
I'm guessing that you aren't taking into consideration
- the year you have to pay for the mortgage
- the household costs of owning the house for a year = utilities, maintenance, etc
- the cost of selling a house.
I've flipped houses and trust me if you can't sell quickly, the mortgage payments will eat any profit.
= that's why it's not recommended to purchase a house, if you don't plan on staying 3+ years.
In response to the comments: living in the house, doesn't give you any more profit. In fact, it will reduce your profit since those are no longer business expenses.