Philadelphia loan question to rehab property

3 Replies

I am currently interested in a property I have come across in the West Mt. Airy section of Philadelphia.  Its a 2300sq ft building. Has extensive mold damage.  I was planning on doing most of the demolition and painting myself, and then hiring out for the rest of the work.  

   My plan is to buy the property cash, and then seek a loan for the rest.  What type of options do i have for financing.  After purchase i will have 20k left in reserves, and dont wish to touch that just in case of any unexpected costs.  

  Im hopong to convert the building into a true duplex and move in one while renting out the other.  Since it would be owner occupied i dont know if that would exclude me from some hard money loans.  Also I plan on keeping the property long term so i also think that would be a problem for many hard money loans.  Any insight would be appreciated. 

I live in California and I understood that a Hard Money loan cost much more than a bank loan. If you are going to buy and hold you want a loan for the long term. HML, I thought, are better for the short term. Here in Ca. you can get a HML for about 5 years then refinance. But check the facts. I'm a newbie just putting my two cents in.

Originally posted by @Marc Oister :

I am currently interested in a property I have come across in the West Mt. Airy section of Philadelphia.  Its a 2300sq ft building. Has extensive mold damage.  I was planning on doing most of the demolition and painting myself, and then hiring out for the rest of the work.  

   My plan is to buy the property cash, and then seek a loan for the rest.  What type of options do i have for financing.  After purchase i will have 20k left in reserves, and dont wish to touch that just in case of any unexpected costs.  

  Im hopong to convert the building into a true duplex and move in one while renting out the other.  Since it would be owner occupied i dont know if that would exclude me from some hard money loans.  Also I plan on keeping the property long term so i also think that would be a problem for many hard money loans.  Any insight would be appreciated. 

Hey Marc,

 Its very dangerous even breathing in that stuff. Costs range to remediate / remove it is $500 to $4,000, $6,000, as much as $30K were some quotes that I've seen.  Mold remediation isn't a job for a regular GC, so I recommend you research that a bit more as the costs will have to be taken in to consideration and the removal process done before anything else right after closing(to avoid sickness or potential lawsuits). My coin.

Kudos

Mary    

HML is not for long term as its way too expensive. You will need to be able to refi out within 6-12 months.

Kudos,

Mary

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