Youngstown, OH · Member since 2015 · 21 posts · 5 votes
I am thinking of paying cash on the house then getting a home inprovment loan to fix it and rent it out as the home inprovment loans are at a lower intrest rate. any advice ?
Investor · Cleveland, OH · Member since 2015 · 6k+ posts · 2k+ votes
11y
@William Frantz, anytime you can borrow money in order to make MORE money, why not? The trick is to have got your sums right. For example, in Youngstown (and many other parts of Ohio and the mid-west), the cost of rehabbing a home is often GREATER than the original purchase price. What will your Lender think of that? All the best...
Investor · Cleveland, OH · Member since 2015 · 6k+ posts · 2k+ votes
11y
@William Frantz, my understanding is that it is common for a Lender to loan 75-80% of (as-is) appraisal value - the Title is then held by them as their security. [But, they might not allow that much! Check around]. Be aware that if you borrow your maximum allowable in order to complete your rehab, that doesn't mean that your home will subsequently be worth 175% of your purchase price! Again, you will need to get your sums right. Cheers...
Specialist · Youngstown, OH · Member since 2014 · 51 posts · 12 votes
11y
@Brent Coombs Hello again mate! I heard you've still been working with Terry, glad that worked out for you guys.
@William Frantz I would recommend talking to a state chartered bank such as Home Savings or Talmer Bank & Trust. The state chartered banks are much more investor friendly & will be more flexible on products & options. Lisa at Home Savings in Poland is a great resource.
Investor · Cleveland, OH · Member since 2015 · 6k+ posts · 2k+ votes
11y
@Nathan Bibb, hi Nathan. Yes, Wes has continued with Terry (but hopefully will not be requiring his services for that first Y'town investment too often from now on). Of course, you were one of the BP contacts I referred to in summarizing Wes's story in this other thread yesterday:- http://www.biggerpockets.com/forums/311/topics/227...
We'd love to visit again sometime. Trusting all is well with you and yours. Cheers,,,
Specialist · Youngstown, OH · Member since 2014 · 51 posts · 12 votes
11y
@Brent Coombs Terry the contractor just stopped by our office & said you guys are in the market looking for more property to buy in the area. If so, get in touch.