Anonymous
Anonymous asked in Business & FinanceRenting & Real Estate · 2 months ago

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.

Update:

I’m planning on living in the house for 1 year

3 Answers

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  • 2 months ago
    Favorite Answer

    FHA requires the buyer to live in the house 1 year.

  • martin
    Lv 7
    2 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.

  • 2 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. 

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