Has anyone here remodeled a house they intended to live in then immediately refinanced it to get back some or all of the remodeling costs?
Some context: My wife and I are currently house hacking mulitfamily in Tacoma, we would like to buy a single family house to live in within the next year. The asking prices in and around Tacoma are in our budget, but nice turn-key houses routinely escalate to 10%-20% over asking price (no joke). To be able to afford a decent house in a nice area, my wife and I are considering buying something that needs work in a nice area, putting ~100kish into it and then refinancing to get back some or all of the remodeling costs.
Does anyone have any advice on doing this? What did you do for remodeling financing? How much of you investment was returned when you refinanced?
Thanks a bunch,
@Bond Finseth , it varies a lot based on the condition of the house and if the basement is: Completely unfinished, partially finished, or finished and needs some touches.
You can expect anything from $50K to $150K
@Bond Finseth , this is very commonly done. You will potentially run into some seasoning issues, if you are paying for rehab with cash, and looking for a "cash out" refi. You can also look into a construction/rehab loan from a bank, which you can use for the purchase and rehab, but will likely need a formal estimate from a GC for the renovation in order to secure this type of loan.
This is exactly what I'm doing/navigating right now just in Olympia. Are you trying to do a cash out refi - or do you know, yet? I hear the construction loans have a lot of hoops but are worth it if you're on it. Honestly, I'd LOVE to use one some day - sounds like a dream. That being said, I also hear that they're a, "less desirable offer" from a seller's perspective. This is all purely anecdotal. I'm paying for our rehab mostly in cash, Zillow and Redfin have our property going up at least 10% in a year. Depending on where (and what) you buy in Tacoma you can probably bet on that as well. When I am done-done with the rehab I figure I'll poke around and see who's got what to offer...right now, I'm washing drywall out of my hair. I have a few small multi-families in Tacoma - and love the city. I also have a pretty good crew of contractors right now - so feel free to message me if I can be of any help. Best of luck to you.