Sale After Rehab?
I have heard twice from two different loan companys that if I rehabb a property and sell it within a year other lenders will be concerned with my asking price.
OK I'll explain.
I buy a home for $58,000.00
I sell for $95,000.00.
On paper income of $37,000.00.
OK, they told me a loan company will be concerned about my income. They will think I inflated the price of the house if sold in less then one year time.
I am buying a home for $58,000.00. The homes appraisal value "as is" is $85,000.00. I am planing $14,000.00 worth of rehab. The appraisal value after rehab will be around $105,000.00. I'll sell below FMV.
I was told to keep all receipts to show the loan company.
Now my question is: Does this sound like what I will be faciing in the future?
Thanks in Advance,
Marty 
[addsig]
yes, BUT...
I run into this commonly. THe problem is actually not going to be yours, it will be a problem for the person to whom you are selling. The underwriter for their mortgage may cause a stink. Just keep thorough records, photos and make sure you have the $85k as-is appraisal ready to show.
It's not your fault that you bought for a great price; the lenders are trying to make sure they aren't getting scammed by artificial sales prices.
You may want to work with a mortgage broker when you start getting ready to sell the house; many will be glad to give you their cards and you can explain the deal to them so they can locate a lender willing to accept your situation PRIOR to even having a buyer - for me this has been a great way to have mortgage brokers "owe me" and give a buyer a chance to not be surprised that i just made $50k while only owning their house fro 3 months.
GOOD LUCK!
Keep your reccords, And have a lender that you refer people to. I do it almost like a new home builder would. Where they refer you to a lender. I also have an apprasier that I work with almost every time that dosen't have a problem with it.
In my experience banks are typically far less concerrned about your purchase price and rehab receipts than they are about appraisal and inspections. Why should they be? Houses get bought and rehabbed all the time. Banks are obviously not oblivious to the opportunistic activities of RE investors. Keep your receipts anyway, of course, since you'll need them at tax time. The tax man/woman WILL care.
Thanks for all the replies. So it does happen. I'm newbie and I have a long way to go and alot to learn. I again thanks for everyone's help.
Thanks,
Marty