1st time Investor Closing on Duplex in a Month, Nervous

6 Replies

Hi,

Nervous, and overwhelmed first time rehabber and Investor here.

I just had the inspection done today on the duplex, closing Nov. 10th

Everything looked good, a few minor odds and ends.

Upstairs is rented and the downstairs in my rehab project. I estimated $8k-$10k on the project. (Kitchen, Bath, floors, etc.) 

1. I'm really nervous that I'm in over my head and made the wrong decision. Is this normal? It's an old building but solid most plumbing and electrical are updated.

2. The money I was going to withdraw from 401k plan was denied. So now I'm not sure where to get the funds to rehab. 

Can't use 203k, I'm doing the work myself

I figured if there was any where to vent and ask for help it would be here.

So.. any advice? I don't want to back out of the deal 

Maybe you can find a partner that has the funds... if it is a good enough deal I am sure you wont have too much trouble finding someone. Let everyone around you know what your doing and show them that your passionate about what your doing, this goes a long way. If you don't want to back out then don't back out, Never say you CANT do it, be persistent on finding a way that you CAN do it!

As far as being scared and nervous........totally normal lol, I am also in the process of my first deal.

@Frank Damico

Congrats.  I am nervous every time  no matter how solid things are.

$8-10k isn't really a lot of money in the big picture.  How about a small personal loan, line of credit or credit card perferably with a no interest until x date.  

Note: not financial advice, just brainstorming for you.

@Frank Damico before getting someone else involved and committing to the deal, look over your inspection report with a general contractor. Be sure that you know what your rehab is going to cost.  If someone were coming to me in your situation, I would want to make sure that you knew your rehab costs down to a penny if you had never done this before. I would also ask why the downstairs needs to be rehabbed or vacant. 

Numbers don't lie. If the math doesn't add up, there is no shame in walking away in contrast to lying to yourself that it is magically going to work. Not trying to sound like a Debbie downer, but the bubble happened because people stopped doing math and got in because they were keeping up with the Jones's. Do your homework and you will be just fine especially when you can present your findings to your future partner!!!

yes, someone suggested Home Depot. So I'm definitely going to ask some questions when I close, just worried about over extended myself with debt lol

Originally posted by @Kristina Heimstaedt :

@Frank Damico before getting someone else involved and committing to the deal, look over your inspection report with a general contractor. Be sure that you know what your rehab is going to cost.  If someone were coming to me in your situation, I would want to make sure that you knew your rehab costs down to a penny if you had never done this before. I would also ask why the downstairs needs to be rehabbed or vacant. 

Numbers don't lie. If the math doesn't add up, there is no shame in walking away in contrast to lying to yourself that it is magically going to work. Not trying to sound like a Debbie downer, but the bubble happened because people stopped doing math and got in because they were keeping up with the Jones's. Do your homework and you will be just fine especially when you can present your findings to your future partner!!!

 Thanks Kristina,

Well the numbers for the rehab I believe are really accurate, that's with me doing most the work. I've dabbled in home improvement and helped friends. It's more of updating and cosmetic. But thanks for the advice! I'm definitely going to go over everything here again.

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