Construction loan on owned land with 140k cash on hand

Construction loan on owned land with 140k cash on hand

Member since 2024 路 11 posts 路 1 vote

I have about 140k in cash available, and looking for guidance on the best route for funding the second half of constructing a duplex. A little background, I own about 9.4 acres in Hermitage, PA where I house hacked the property. I put about 60k down to avoid PMI, and it came with a duplex (I live on one side) and a single family netting me 2500/month with mortgage being $2,080. I have started to work directly with the city to get approval to construct multiple duplexes on the property, a surveyor/engineer, and an architect finishing the plans. I also personally know a builder who can construct them for about 250k each. My current plan is to get a construction loan for 125-150k, and once it's constructed do a cash out refinance to pay for it. Is this a good plan, is there a specific loan to use, or what is the best way to do this? Thank you

1Reply
39 views

Most Popular Reply

Handyman 路 Pittsburgh, PA 路 Member since 2018 路 5k+ posts 路 13k+ votes
2y
Quote from @Steve Vaughan:

@James S. congrats on what looks like a great plan.  I would probably borrow a little more than $100-$150k if I could to keep more reserves.

All I can do is mention my favorite fellow long-term operator and handyman in P-burgh @Jim K.. Hopefully he has a minute to chime in.  

Best wishes on your worthy project馃憤


 Sorry, James and Steve, Hermitage is another one of those "own little world" kind of places in Mercer County, PA. I know less than nothing about new construction loans for duplexes, let alone how to operate up there, in what is essentially a Pennsylvania suburb of Youngstown, Ohio. Good luck to you, James, because it does sound interesting, and I hope to learn from you in the future.

See this reply in the discussion

4 Replies

Jump to latestLatest
  • Rental Property Investor 路 East Wenatchee, WA 路 Member since 2014 路 10k+ posts 路 16k+ votes
    2y

    @James S. congrats on what looks like a great plan.  I would probably borrow a little more than $100-$150k if I could to keep more reserves.

    All I can do is mention my favorite fellow long-term operator and handyman in P-burgh @Jim K.. Hopefully he has a minute to chime in.  

    Best wishes on your worthy project馃憤

  • Handyman 路 Pittsburgh, PA 路 Member since 2018 路 5k+ posts 路 13k+ votes
    2y
    Quote from @Steve Vaughan:

    @James S. congrats on what looks like a great plan.  I would probably borrow a little more than $100-$150k if I could to keep more reserves.

    All I can do is mention my favorite fellow long-term operator and handyman in P-burgh @Jim K.. Hopefully he has a minute to chime in.  

    Best wishes on your worthy project馃憤


     Sorry, James and Steve, Hermitage is another one of those "own little world" kind of places in Mercer County, PA. I know less than nothing about new construction loans for duplexes, let alone how to operate up there, in what is essentially a Pennsylvania suburb of Youngstown, Ohio. Good luck to you, James, because it does sound interesting, and I hope to learn from you in the future.

  • Investor 路 Youngstown, OH 路 Member since 2017 路 2k+ posts 路 2k+ votes
    2y
    Quote from @Jim K.:
    Quote from @Steve Vaughan:

    @James S. congrats on what looks like a great plan.  I would probably borrow a little more than $100-$150k if I could to keep more reserves.

    All I can do is mention my favorite fellow long-term operator and handyman in P-burgh @Jim K.. Hopefully he has a minute to chime in.  

    Best wishes on your worthy project馃憤


     Sorry, James and Steve, Hermitage is another one of those "own little world" kind of places in Mercer County, PA. I know less than nothing about new construction loans for duplexes, let alone how to operate up there, in what is essentially a Pennsylvania suburb of Youngstown, Ohio. Good luck to you, James, because it does sound interesting, and I hope to learn from you in the future.

    James--you'd be welcome to join our Youngstown (Boardman) meetup and see if you can get more feedback there. If you're interested, I can message you the details.
  • Member since 2024 路 11 posts 路 1 vote
    2y
    Quote from @Nicole Heasley Beitenman:
    Quote from @Jim K.:
    Quote from @Steve Vaughan:

    @James S. congrats on what looks like a great plan.  I would probably borrow a little more than $100-$150k if I could to keep more reserves.

    All I can do is mention my favorite fellow long-term operator and handyman in P-burgh @Jim K.. Hopefully he has a minute to chime in.  

    Best wishes on your worthy project馃憤


     Sorry, James and Steve, Hermitage is another one of those "own little world" kind of places in Mercer County, PA. I know less than nothing about new construction loans for duplexes, let alone how to operate up there, in what is essentially a Pennsylvania suburb of Youngstown, Ohio. Good luck to you, James, because it does sound interesting, and I hope to learn from you in the future.

    James--you'd be welcome to join our Youngstown (Boardman) meetup and see if you can get more feedback there. If you're interested, I can message you the details.
    If you could I would appreciate that.
Join the conversationCreate a free account to reply, vote on answers and follow this thread.