Complete newbie checking in. I registered for bigger pockets months ago after about 3 months into my real estate education. Super excited but everything piece of advice I saw told me, all my resources are here at my fingertips.
Well I've been studying. I think I've found a property I want to make a move on. It's a unique situation and so I'm coming to the experts for advice.
The home is 3bd-2bath-1437sq ft. Home was built in 1974 and appraised for around $108,000.
There is some work to be done in the master bath. (Tile, new shower + subfloor)
She is offering it at $90,000.
Okay now here's the fun. I know this house and lived there for 3 years. It's in great shape with a brand new HVAC unit put in last year + the roof was just completely redone at the same time.
What I haven't mentioned is the home has a garage that was converted into a bonus room as well as an additional seperate roommate entrance bedroom was added to the back which is around 600sqft.
Neither the bonus room or the back bedroom were permitted. They both have electrical + hvac and we're done about 20years ago by the friends grandmothers friend who. I one knows if they were contractor or what.
If everything can be permitted it would become a 2300sq ft 4bd/2bth.
Now, I am a man that is use to stress and responsibility working management in corporate retail for years. My savings are nothing though so financing is an issue.
I believe I can work something with the owner but would love options. Ideas? Advice?
Is this a deal that sounds good and what questions should I ask myself I haven't?
Creative financing what are my options? (650 score). No realtors are involved and homeowner would be willing to work out some deal. Want all parties happy.
Owner currently has an amazing 10yr loan at low interest. If I could assume that loan for 12-24mths then refinance and pay off the home.
Just my first home purchase and a. It of the nerves.
Any help or advice would be appreciated as I begin this journey.
p.s. Knowing my plans for this would help. Building a business model based on the BRRR strategy. Hoping to get everything permitted already have renters and will take gains for a downpayment on more doors.
Forgot to mention, $148,000 is average home price in area.
My only caution would be the permitting. That may be difficult to do.
Did you plan on renting it out or flipping it?
I recommend looking into a duplex! Have a tenant pay the mortgage for you!
I will move in with my brother and his wife why getting permitting done. Once everything done and refinanced I will move out they will continue paying rent (they say they will never buy a house) and I will hopefully find a triplex/fourplex to owner occupy.
Basic thought, so the renters are in place and solid and long term.
You may not want to rent to family, your call though.
Sounds like a very comfortable first property man. I like it!
Appreciate the advice Rosston thank you!
sounds like a good situation for a house hack
Everything looks good so far! I would offer this advice: Make your first purchase something that you can afford to have go completely south on.
Something like, you buy a place, it tanks in value, you overpaid for it, etc, and you're still ok financially.
That way, if it does happen, you and your family are in good shape. :)
Hope that helps!
Do you attend meetings in your area? My first advice would be to get a veteran investor to walk through it with you (or a GC). Maybe pay to have it appraised ($400) or inspected by a pro ($300-400). Walk through with them and ask about the permit situation. Get an idea on what it takes to get it permitted. Truth is, the permits are only going to be an issue with you are ready to refi (considering you don't need to finance a takeover now and are able to assume the current debt). So that'll give you time to get that in order.
If the condition is good to go as you say, sounds like a great deal but I do like @Travis Beehler advice. Make sure you are in a situation to be able to afford this incase you get stuck without tenants or you get hit with maintenance costs or other unexpected surprises.
I say go for it. Try to get her to let you Sub2 the property. Keep us posted on how it goes.
Would be fine in a no tenant situation for up to a year. Not to worried bout that. I'm going to follow your advice Benjamin and get the inspection on the rooms to be permitted.
Appreciate all of your guys input!
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