Victorian home 3 unit Brrrr

Victorian home 3 unit Brrrr

Leigh FraynPro Member
Member since 2025 · 9 posts · 5 votes

I'm interested in purchasing a Victorian home in Belfast Maine, it has the potential to be turned into a three unit house. It already has one existing apartment. On the third floor, and the first floor. The asking price is 699K it needs a lot of work. I wouldn't say it's a rehab however, the hardwood floors need to be redone. There's carpet throughout that should be ripped up and the hardwood floors under redone, the bathrooms are outdated as well as the kitchens those need to be Completely done. My question is, what do I offer, what kind of loan do I get, do I do a BRRR, this would be an investment property that I would want to do midterm rentals for traveling nurses, possibly might want to also rent out one of the units long-term. I'm looking for a strategy advice

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  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    1y

    Hey Leigh, 

    Have you looked into hard money lending? If you are planning to finance the renovations and refinance into long term debt, a hard money loan could work. Most lenders will allow up to 90% of the purchase price and 100% of the rehab financed. 

    If your exit strategy is a conventional loan, you might need to wait 12 months to meet the property seasoning requirement. If you use a DSCR loan however, a few lenders do not have a seasoning requirement to cash out on the new appraised value. The issue will be the fact that you are using this as a mid-term rental. Most lenders will either go based on long term or short term rents to qualify. There are some options to do a "no ratio" or less than 1.00 Ratio DSCR loan if the property does not meet the minimum DSCR requirement. The rate however might be a bit higher if you go this route.

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  • Dan WeberBusiness Member
    Realtor · Portland, ME · Member since 2015 · 655 posts · 552 votes
    1y

    Hi @Leigh Frayn, the one piece I would double check on is if Code Enforcement is going to require you to install a sprinkler system to convert the home from a single family to a 3 unit building. Once you go from SF or duplex to 3+ units, it does trigger this in the building code if the town knows what they are doing. This is obviously a huge expense in the construction budget so make sure you speak with them and figure this into your numbers if they require it. 

    The answers to the rest of your questions kind of depend on your short term goals and investment strategy. Reach out if you need a sounding board, happy to help you talk through them.

  • Dan WeberBusiness Member
    Realtor · Portland, ME · Member since 2015 · 655 posts · 552 votes
    1y

    @Leigh Frayn shoot me a message, happy to connect and discuss!

  • Investor · Member since 2019 · 5 posts · 1 vote
    1y

    I would just underwrite it for a variety of strategies and to renters other than just nurses.  I've done ED and ICU contract work for the past 12 years, and have several mid terms in Maine.  Theres a shift toward "internal contracts" and hospitals in the Belfast/Rockland/Ellsworth area don't have a lot of contracts posted typically.  Lewiston and Portland would have a more consistent need for travelers.  Could certainly still work for you, just make sure you distinguish your rentals from the crowd and make sure the numbers work as a LTR just in case.  

  • Leigh FraynPro Member
    OP
    Member since 2025 · 9 posts · 5 votes
    7mo

    Hi matt , im looking mostly in Rockland Maine for a duplex. One I can have access to during the summer months to be close to family. I currently reside in San Diego California. I am not sure what an ED and an ICU contract work is. But I would love any advice you would have for me as to the strategy of and if a property is a good deal. I have a property in Mind that I've liked on Redfin. It's in Rockland

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