Investor · Londonderry, NH · Member since 2015 · 163 posts · 59 votes
Hey BP. Different post than I would normally write however I have been flipping around different ideas for my next move and wanted to get some opinions of others.
To keep this short for now here's the scenario.
Been investing since 2015. Duplex, Single family, landlord, property manager, always had roommates/tenants. Both properties expected to close in the next 10-20 days.
I want to live on my own for a year or two, but having a hard time buying just for myself. My first thought, single family that needs rehab that I can do myself (I enjoy that work and have done plenty, outside major foundation/plumbing electric etc.) I'd be able to live alone, continue to build my rehab skills/knowledge. Refinance/Rent/Sell in a year or two depending on market. So it's like a combo of BRRRR/Buy&Hold/Flip etc!
Who else has been in this position and how did you come to a conclusion
All opinions are welcome and would be happy to provide more info if needed.
Rental Property Investor · Virginia Beach, VA · Member since 2018 · 53 posts · 34 votes
6y
Hey Anthony,
I am actually going through the process now. Currently looking at homes that need rehab but still inhabitable to some degree so banks are still willing to loan on them. When talking to my mentors they say it is possible to still get a conventional mortgage if you provide them extra information like a CMA (Comparative Market Analysis), an ARV (After repair value) assessment or a repair budget. The more information you give the banks on the work you do the more likely they will be willing to work with you. As for the actual cost of repairs I plan to do a Home depot project loan and just do everything myself. They allow you to use that money to pay for contracted work as well so if there is anything I need contractors for it will be nice to have that flexibility. My plan is to refinance once repairs are done. The strategy is very similar to something you would use hard money for, but is more relaxed because you are living in the place while fixing it. I find this to be a great strategy and allows you to practice some of the skills you mentioned above. Best of luck!
Real Estate Broker · Northeast PA · Member since 2017 · 2k+ posts · 2k+ votes
6y
From my experience, a live-in rehab is a divorce waiting to happen. Everything, I really mean EVERYTHING will have construction dust and grit in it. Puts the crunch in your salad.
Investor · Londonderry, NH · Member since 2015 · 163 posts · 59 votes
6y
@Cameron Rockwell thanks for your input appreciate it. Seems like we're on a similar path at this point. I'll connect with you and would be good to stay in contact go forward we can share any experiences along the way. Thanks!
Investor · Londonderry, NH · Member since 2015 · 163 posts · 59 votes
6y
@Marc Winter haha thanks Marc! I have done it in the past and it definitely requires a bit of patience living in there while construction is underway. If I go that route, the goal is to have more than one of the major rooms (i.e. 2+ bathrooms) so if I'm working on one I can still have one to use without a rehab mess. Thanks!