So, I'm looking a 8 door, all 3/1, for a screaming deal. It's in prime location right next to the local college. My strategy was to take out a loan from a private investor, move in, fix them up and rent them out and refinance. They should cashflow very well.
Here's my personal issue. I'm in debt. Student loans, business debt, credit cards, you name it.
Would it make sense to spend a bit more on the reno and sell each unit as a condo?
100k on the property, 200k on reno, and an ARV of about 400k conservatively.
I want to BRRR it out real bad, but my fear is not being able to refinance.
Let me know what you think guys!
With a little searching you might find the podcast where they discussed it. One guest did similar, but I can't remember the episode.
I have done this with a commercial building. The hidden cost of having to survey each unit and create condo docs with separate deeds can be extremely expensive and should be considered before moving forward with this. Speak with an attorney that could give you an idea of expense.
Good Luck, Aaron
Thank you, I'll look into it.
@Daric Myers Maybe you should try and wholesale this sucker to clear up some credit card debt and student loans. It sounds like even a private lender (unless it's like your rich grandma or something) would probably balk at lending to someone with your personal credit profile.
That is a great idea! I'm obviously to emotionally attached to this one anyway...lol. I'll get it under contract first and see what happens.