Investor · Norfolk, VA · Member since 2014 · 125 posts · 19 votes
So it's been a long road and I still have more to go but I have learned a great deal from my first big rehab. I bought it with a mini-construction loan (rolled purchase price and rehab into a short-term loan) from a local bank. I've lived in the house while I fixed it up and I just got the appraisal back for the refinance. I don't know about anyone else but there was a lot of anxiety with the appraisal. It came in almost 100k over my expected ARV! So with the refinance I have many more options. Here are a couple pictures:
I hope to post more details and specific numbers but for now I am just happy that my hard work really has paid off!
Investor · Austin, TX · Member since 2014 · 144 posts · 85 votes
10y
Appraisals are my least favorite part, they always seem to come in low! Congrats on your huge valuation! We have 2 appraisals this month, my fingers are crossed permanently ;)
Investor · Cleveland, OH · Member since 2015 · 6k+ posts · 2k+ votes
10y
@Stacy E., I totally agree with the exhortation given by @Cal C..
I would certainly recommend cashing out the FULL approved amount - but, because unexpected windfalls have a tendency not to be treated with the same care as hard earned savings, it will pay you to be MINDFUL of that fact.
Congrats on a great job. Now, SQUEEZE $200k out of that extra $100k!
Investor · Norfolk, VA · Member since 2014 · 125 posts · 19 votes
10y
Thanks everyone. It's just really an exciting time. It was my first big project and I made a ton of mistakes but I bought it right. So that made my mistakes a little more forgiving. The bank won't let me pull out all of the equity because it will push me over the 40% for debt to income ratio. It's okay though, the latest numbers will allow me to cash out over 50k. I didn't go into great detail but I converted a single family into a duplex so it will cash flow pretty well too.
Thanks everyone. It's just really an exciting time. It was my first big project and I made a ton of mistakes but I bought it right. So that made my mistakes a little more forgiving. The bank won't let me pull out all of the equity because it will push me over the 40% for debt to income ratio. It's okay though, the latest numbers will allow me to cash out over 50k. I didn't go into great detail but I converted a single family into a duplex so it will cash flow pretty well too.
Maybe your DTI will change if you rent the property before the refinance?
Real Estate Agent · Saint Louis Park, MN · Member since 2015 · 213 posts · 82 votes
10y
Congrats @Stacy E.! Would love to hear the final update when you get further along the process as it relates to finances. These pictures are awesome to flip through. Nice job on the place!