1st Homestyle Reno Loan

CO · Member since 2026 · 21 posts · 10 votes

I was thinking this was a good idea because it gets the plumbing replumbed and inside rehab. I'm getting 35k on top of a 500k loan. original purchase price was 545k so I got the seller to come down to 500k and do the roof and concessions. I'm going to put 25k for down payment. It is a 2/2 duplex with detached 2 car garage in the prime desired neighborhood, new condos and townhomes being built everywhere. My question is, do you think this the best way to go about it with the Homestyle Reno Loan so I would have the 35k in capital to do all the Reno.

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Vijay FriedmanBusiness Member

Miami, FL · Member since 2026 · 766 posts · 122 votes

2mo

Quote from @Kacey Betts:

@Kacey Betts
It sounds like you've negotiated a solid price reduction already. Before deciding on a renovation loan, I'd make sure the renovation budget is realistic and understand how the draw process, contractor requirements, and contingency reserves work. Those details can have just as much impact on the project as the loan itself. Wishing you the best with the duplex!

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Joseph CacciapagliaBusiness Member
Lender · San Antonio, TX · Member since 2020 · 1k+ posts · 1k+ votes
2mo
The homestyle renovation loan is a great product, and it sounds like you have the right kind of project for it. As long as you qualify for the program, the biggest drawback is that you're limited to what work, if any, you can complete yourself. For some investors that's an issue, because they wanted to put some sweat equity into the deal.
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Jonathan KlemmBusiness Member
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Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
2mo
Hey There @Kacey Betts - Sounds like you are checking a lot of the right boxes for a great long term investment.
If you are able to tackle the renovation with a home style loan, that's an awesome play. We do a decent amount of them here in Chicago, and the reno loans are always a bit more difficult. Mainly, because you have more players involved, and you just need to make sure all your team members understand how to play the game.
Are you only planning on doing interior plumbing? Is it currently galvanized pipe? What's the condition of the rest of the property?
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Kacey Betts
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CO · Member since 2026 · 21 posts · 10 votes
2mo
The rest of the property has some minor things that will get fixed but the inside needs to be gutted and redone, I am getting wholesale prices on material because my W-2 job is in the construction business and I am the estimator, so I have made a lot of great contacts and good relationships to get going on the investment journey. I've got to do some mudjacking and fix the curb appeal but the roof was done last week, I did splurge for the class 4, I paid the extra 775 for both the garage and the duplex to get done. I have friends in all the different trades, I have a granite slab wholesale agent, flooring, roofer, painter and concrete. If you want to invest in Colorado I'm your go to for the rehabs! I plan on going from mid to high end at a very predominant area of town where it's high tourist and lots of higher rents. People pay a premium for the view and the specific area, I feel I truly got a score. The current comps are well above what I got, so there is lots of opportunities. I have read a ton of books on this investment journey, eager to learn more. I want to be the next success story on BP. I will put in the sweat and time. I want to show my granddaughter with a community, you can accomplish anything!
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Kacey Betts
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CO · Member since 2026 · 21 posts · 10 votes
2mo
I know that this is a longer process than usual, with that being said I'm conditionally approved. Yay...... I have to get the lease for the current home. That is the last piece of the puzzle I am waiting on. I am looking at sober living for the single family residence, that is why I am waiting on the lease. This is another whole different kind of rental that I haven't seen much on here. I dare ask why? Before I do, it will be to a company with a guaranteed amount monthly not individual sub leases. Yearly lease also.
...... Your thoughts
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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
2mo
Quote from @Kacey Betts:

I was thinking this was a good idea because it gets the plumbing replumbed and inside rehab. I'm getting 35k on top of a 500k loan. original purchase price was 545k so I got the seller to come down to 500k and do the roof and concessions. I'm going to put 25k for down payment. It is a 2/2 duplex with detached 2 car garage in the prime desired neighborhood, new condos and townhomes being built everywhere. My question is, do you think this the best way to go about it with the Homestyle Reno Loan so I would have the 35k in capital to do all the Reno.

Better than putting it on a credit card!
Just be sure you understand how the program works.
I doubt they give you the a check for $35k at closing.
You typically access the funds via a draw after work is confirmed completed.
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- Kacey Betts
  OP
  CO · Member since 2026 · 21 posts · 10 votes
  2mo
  Quote from @Drew Sygit:
  
  Quote from @Kacey Betts:
  
  I was thinking this was a good idea because it gets the plumbing replumbed and inside rehab. I'm getting 35k on top of a 500k loan. original purchase price was 545k so I got the seller to come down to 500k and do the roof and concessions. I'm going to put 25k for down payment. It is a 2/2 duplex with detached 2 car garage in the prime desired neighborhood, new condos and townhomes being built everywhere. My question is, do you think this the best way to go about it with the Homestyle Reno Loan so I would have the 35k in capital to do all the Reno.
  
  Better than putting it on a credit card!
  Just be sure you understand how the program works.
  I doubt they give you the a check for $35k at closing.
  You typically access the funds via a draw after work is confirmed completed.
  
  Yes, I get 5 draws but it is still 35k in improvements that I don't come out of pocket for which I thought was perfect.
  0 Reply
Vijay FriedmanBusiness Member
Miami, FL · Member since 2026 · 766 posts · 122 votes
2mo
Quote from @Kacey Betts:

I was thinking this was a good idea because it gets the plumbing replumbed and inside rehab. I'm getting 35k on top of a 500k loan. original purchase price was 545k so I got the seller to come down to 500k and do the roof and concessions. I'm going to put 25k for down payment. It is a 2/2 duplex with detached 2 car garage in the prime desired neighborhood, new condos and townhomes being built everywhere. My question is, do you think this the best way to go about it with the Homestyle Reno Loan so I would have the 35k in capital to do all the Reno.

@Kacey Betts
It sounds like you've negotiated a solid price reduction already. Before deciding on a renovation loan, I'd make sure the renovation budget is realistic and understand how the draw process, contractor requirements, and contingency reserves work. Those details can have just as much impact on the project as the loan itself. Wishing you the best with the duplex!
786-656-0387
DreamPoint Capital
Website View Page
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