All Forum Posts by: Christopher Rutherford

@Account Closed I used Prospect Mortgage for my 203k loan. I just checked and I think they operate in FL. I would recommend them.

@Francene Iaizzo the original idea was to cash out refi but my appraisal came in too low. I did manage to refi into a doctor loan to get rid of the mortgage insurance that comes with the 203k. I ended up selling the place for 100k over the appraisal 6 months later so things worked out in the longer run.

No, it was our primary residence when we lived in VA. Now we live in New Hampshire by Dartmouth College and our focusing investing here and in Portland Maine area where we are both from.

@Francene Iaizzo I just wanted to answer your question about the 203k contractor. On my first deal I did a 203k loan and I was able to use a highly recommended contractor in town. He was not a "approved contractor" he actually had never heard of the 203k loan. I just explained to him what the loan was and how it would work and that there would probably be few hoops for him to jump through but he was fine with it and there were no issues. Let me know if you have any other specific questions about the loan or process. 

@Account Closed Yes, I think it is possible. I attempted the exact thing. I purchased my first house with a 203k loan for 220k. Did 80k of improvements (50k of 203k money and 30k of cash). My issue came when I did the refi. It only appraised at 317k. My attempt at the cash out refi failed. But 6 months later I sold it for cash offer of 420k so it worked out in the longer term. My advice would therefore be just know your ARV and plan for multiple exit strategies.

@Quin Weidner the street was Kent Terrace. Jefferson Park Ave neighborhood. 

My wife and I bought our first house in Charlottesville VA. We financed it using a 203k loan to add a master bedroom and bathroom. The rest of the renovations would be performed by me such as adding additional bedroom, bathrooms, kitchen remodel re do the floors. Once renovations were completed I then contacted Bank of America to refi into a physician loan into to get rid of the mortgage insurance to allow for better cashflow. I would be happy to discuss details about any step of this deal just PM me.

Below are details of the project and photos

House 2 bed, 1 bath, 1200sqft

Purchase Price = 220k (found on craigslist so no commission)

Total Rehab 80k (50k financed using 203k and 30k cash)

Listed for 425k received cash offer for 395k- counter offered at 420k and they accepted.

Obtained my real estate license so I could save half the commission of roughly 12k

Profit 108k

Before:

After:

It was quite a ride!

Bernie, I had the same thought! I love the idea and plan on putting something similar in my leases. 

@Dan Zhao Not sure about the 1099 piece but I would say give Judy Daniel a call with Bank of America. She has been in the industry for decades and she is who my wife and I used on our Doctor loan. You can google her name and BofA to get her contact info.

Yes, my wife and I have used Bank of America for a physicians loan. Our first property we did a 203k to do a major value-add on a SHR. I then re-financed it into the doctor loan since my wife is a doctor. It is an amazing product. The best part is there is no limit on the number you can have like there is with FHA. The limit is with the bank. Meaning once you have one with BofA then you will need to go to SunTrust to get your next for example assuming your debt-to-income numbers work and such.