All Forum Posts by: Christopher Rutherford

@Brian Garrett I don't have all the numbers broken down into super detail. I just did my taxes and my basis was right around 300k. I was clearing $900 a month cash flow managing it myself.

@Adam Juodis Yes, I did the refi as soon I was done with the 203k draw. It did cost a few thousand to do the refi but I saved about 300/mo.

I was in a very similar situation a few years ago. I bought my first place for 225k with a 203k loan. Then did 50k in renovation (using bank funds) along with 25k of cash funds and rented out the property. I was thinking of keeping the property as a rental so I did a refi. I tried to get the 20% equity but my appraisal came in too low so I went into a physician loan instead. I was happy with the cash flow but when I looked at what I thought I could sell it for I decided to put it on the market. The market was so hot I managed to get a cash offer of 420k in 3 days. 

@Adam Juodis I did a refi out of my 203k as soon as the last disbursement was made to my contractor. It worked out great. I didn't hit 20% equity but I did a refi into a physician loan so it didn't matter. I would highly recommend doing the refi if you are planning a longer term rental. Last I heard you are not able to remove the PMI off of FHA loans anymore even when you have 20% equity.

@Derek Weems I assume you are looking for Portland Maine. I just set up an LLC with a great RE Lawyer in Portland. I will message you his info.

It was not difficult at all. The physician loan is a little easier to do than a straight conventional loan. I was trying for 20% equity and not use the physician loan but it didn't appraise for enough. I think it came back at 317k or something (with a mortgage at 280k). But, about 6 months later I sold it for 420k cash offer in 3 days so that tells you how much an appraisal is worth. 

Yes, you can refi out. I did a 203k on my last property and then did a refi into a physician loan (nothing down and no PMI) shortly after the project was completed.

I would shy away from properties at that price point. The profit margin is so low that one or two major unexpected issues and there would be little to no profit. I would say you are better off partnering with someone in a more desirable location where there would be less risk.

@Noelle Yarn I had a flexible GC who was fine with paying for some extra materials is all I was referring to. Feel free to reach out on PM if you have any other questions.

@Joshua Shepherd Here are a few private money people in the Portland area. Not sure if they do anything in your area but might be worth a try. 

Lincoln Capital, Milk Street Capital