We are about to embark on our fix and flip. We’ve found a house that is currently in foreclosure and is about to be listed with a realtor we are friendly with. She tells us that the bank is hoping to sell the house for $110,000 to $120,000 it needs about $30,000 in updates. Comparable houses in the area are selling for $215,000 to $225,000.
We are planning to use our Home Equity Line of Credit on our house to initially finance the purchase. Once the sale is complete we plan on taking out a Line on the new house and paying off the line on our own home and using the balance for repairs.
This sounds like a no brainier to us but I’m interested in any input anyone may have.
How does the financing arrangement sound??
-Laney