First Time Investor with questions
Hello All, I am a first time poster, but have scoured these forums and read a lot over the last year. I still have some questions. First off, I do own my own communications company currently, but am looking to expand into real estate as my side business/ 2nd business. I do have some capital to use, but still looking at some Hard Lending options/Rehab to Rent options.
#1 - I currently live in CT and looking to rehab in the state. I have 3 realtor connections in place that have been sending me listings on rehab SFH, MFH and Condos. Would you recommend getting a pre-approval letter from a Lender Before looking at any of these properties or is it ok to go in, write up an offer and put the purchase as OTHER - Hard Money then get approval?
#2 - I have several contractor connections within the state including electrical, plumbing, construction, masonry and roofing. Having owned 2 properties in the past and currently owning a SFH as well as a current business owner I can judge most rehab prices pretty well and can form budgets as well as project manage. When dealing with a HML do you always over-budget your rehab cost for unexpected issues or would you recommend keeping a pretty accurate rehab budget to the HML?
#3 - Since we are headed for or currently are in an economic/housing downturn would you recommend doing more of a rehab to sell or rehab to rent type of investment? Our rental market inventory here is very limited. I am figuring this would be a case-by-case basis, but just trying to get an overall opinion for a newbie and I have never been a landlord before.
Thank You in advance