My plan over the next year:
- Sell SFH Rental netting $75,000 profit (use for rehab budget)
- Raise capital for down payment & closing costs...need ~$100,000 ($75,000 above not included)
- Approach Fannie Mae HomePath Property (2-units) and make an offer with 20% down
- Live in one unit and renovate property and other unit to raise value
- Rent out other property and house hack
- Refinance and pay everyone back
Assuming the numbers work (my initial and rough estimates say yes) is this a solid plan? What problems will I run into with banks? Any comments, concerns, are welcome!
Regg, good to see you on here bud :). I'm assuming you have 2 properties? One SFH and another building as well?
The plan is logical. Your net profit of $75k (does this include taxes?) should be enough for a gut rehab of a 2-flat for sure. Quick question: Have you thought about a HML instead of going through Fannie Mae? Might be risky for your first joint venture...
As for help with bank related questions...how about we do a good ole' fashion trade off-- I'll PM you one of my buddies' numbers who has a ton of experience with refinancing and dealing with banks. In exchange, post any advice/answers that would be good for someone who has the same question.
Oh, and a beer or two when we hang out ;)
@Sam Amir Thanks for the reply man and also good to see you on here!
The main reason I was planning on Fannie Mae is because I have my eye on this property that has been on there for a while and the price continues to trend downwards. I am going to look at it tomorrow so I will know much more after that.
I am definitely being cautious when it comes to this being a joint venture since it will be my first time using investment money to fund a deal, however, after my experience with my 4-unit rehab I think I might be ready to take this on.
Again thanks for the post and I hope to see you soon!