All Forum Posts by: Anton Watt

Anton Watt has started 61 posts and replied 190 times.

What would seller financing look like in this situation?

Originally posted by @Jamaal Johnson:
@Anton Watt a lease option doesn't give you full title, it does however give you interest in the property in which yes as long as the contract contains correct verbiage you would be able to renovate home. The risk in doing this would be if you throw all your money into a home someone else has title to and breach your lease agreement you basically just fixed their house for free. There may be grants you can use towards property repairs depends on the home. Make sure you have your end in mind as far as how you will payoff what you owe after option time is up or just go the route of seller financing to gain title while seller carries note.

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Hello BP,

I found a home that I want to purchase and live in but as a real estate agent I write off so much that my income is really low right now. In the next few years I will change this so for now I want to lease purchase this home and rent out the spare rooms to pay the mortgage. The home needs work however; parts of the foundation block are crumbling and the bathroom needs a full remodel. Is there anyway to just get a renovation loan to add to the mortgage that will allow me to upgrade the home?

Please help BP

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I think a lease option is what I am leaning towards now but then where will I get the money to do the upgrades? Any suggestions?

Originally posted by @Nghi Le:

HMLs will not lend on owner-occupied houses. So a 203k loan or HomeStyle renovation is your only option here, unless you did some other creative financing like seller financing, lease option, etc.

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Athens, Georgia

That's what the mortgage broker told me when we spoke. He said the most they would add on top of the loan for renovation was 35K. I'm glad to know that there is a chance it has a higher renovation limit. I will explore this option.

Originally posted by @Martin Goodenberger:

Originally posted by @Anton Watt:

It wasn't over budget - house needed a ton of work and 203K was the only way I could fund it all. You can't really go "over budget" on a 203k, because every update has it's own budgeted line item (that the 203K appraiser will sanity check and approve) and an extra 10% of those line items gets rolled in as a safety net. We didn't need the surplus and the balance got applied to our principal at the end of the process. Then I refi'd to get out of PMI.

I did a quick google search and can't find anything about a $35K limit...no idea where that's coming from.

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Athens, Georgia

Originally posted by @Martin Goodenberger:

I haven't had the 2 building on same property scenario. I did a 203K on a multi family (3 units) that was all in one building. It's a little extra work, but it's a great option when you don't have the cash to pay for all the rehab. I ended up adding about $70K of reno into the loan, on top of the ~$40K I self funded.

Wow that went over budget a little haha! I was told max renovation loan was 35K in 203K. Is that different with a multifamily?

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Athens, Georgia

Originally posted by @Martin Goodenberger:

I believe a 203K would be fine, but they'll make you fix the other issues you noted and may find some more. Have you done a full inspection?

I am doing an inspection on Friday. I was also told that having a second home on the property would be a problem. Have you had this issue?

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Athens, Georgia

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Athens, Georgia

Hello BP,

I have years of experience wholesaling properties for investors to flip or rent. They usually use hard money or cash to purchase their homes. I am now under contract to buy my first home where I will be living in and renting out the spare rooms. I found this house off the market at a steal of a price. The cool thing about this house is that their are 2 houses on this one lot. The 1st house is a 3/2 (Main house) and the 2nd house is a 2/1 (Spare house with living room and kitchen). The home appears that ,as is, it will not pass an inspection from a mortgage bank because it is missing the railing around the front porch. Also the 2nd house has an addition built to be a closet for a bedroom that is held up by two metal support beams but it still slopes and feels as if you could break through the floor if you jump on it hard enough.

I am under contract for 104K and the home should appraise for 130K as is. After Repair Value is 250K. 2/1's rent for 800/ month as well.

My question to you all is do you think I can get a 203K loan to buy this house and fix the issues or do I have to get a hard money loan to fix it all up then refinance later? (I really don't want to have to wait 6 months in a Hard money loan to finish seasoning). Please Help BP!

1 Vote

Athens, Georgia

I look forward to Networking with you all!

1 Vote

I am interested in networking!

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All Forum Posts by: Anton Watt

Anton Watt has started 61 posts and replied 190 times.

Post: Can you renovate a home with just a lease purchase?

Post: Can you renovate a home with just a lease purchase?

Post: Should I 203K or BRRRR?

Post: Should I 203K or BRRRR?

Post: Should I 203K or BRRRR?

Post: Should I 203K or BRRRR?

Post: Should I 203K or BRRRR?

Post: Should I 203K or BRRRR?

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