All Forum Posts by: Charissa B.

I have the information about the rents, tenants, maintenance costs, updates needed etc... I can pull together financials and know that I have good credit. I'm just unsure about the legal aspects as far as actual contracts, applications, etc...

I found a multi family in Hartford County that I am thinking of buying as an investment property. This would be my first rental property. Have a few questions.

1) Can you recommend a lender for investment properties? Will I have to put at least 20% down? I will not be living in this property. 

2) Do I need to meet with a lawyer to draft up a lease, application, etc... and open an LLC?

3) I will definitely need help filing my taxes if I do this, do I need a cpa?

4) If this turns out to be more than I want to manage, can you recommend a good property management company?

Anything else that I should look into?

On an old home in the greater Hartford area that needs to be completely gutted to the studs and redone; new plumbing, electrical, windows etc... What is the average cost per square foot? I know I would need to get quotes from contractors I'm just wondering if there is a rough estimate as a starting point? 

Here is a scenario:

Investor provides cash to buy house.

I buy house in my name with cash from investor.

I work on house with a partner to fix up the house and find subcontractors as needed.

When house sells investor gets money back plus profit.

Myself and partner split the rest of the cash.

Since the house was in my name how do I pay my investor and partner so that the IRS knows I should not be taxed on all of the profits?

Looking to get started investing in real estate. Interested in flipping. I've been looking at foreclosure properties Hartford and Tolland County. Since I'm new to this it's hard for me to accurately estimate how much renovations will cost and how much a property might actually sell for. But everything I've seen seems priced where once it's purchased and renovated there is little room if any for profit. I doubt banks are going to come down on price by $30k but that's what it seems like they would have to do for a profit to be made. Maybe foreclosure properties aren't the best way to get started?

A sibling and I are interested in dipping our toe into flipping. We looked at a few properties and found one that we like. It's a homepath property and we can't get a straight answer on whether it will qualify for conventional financing without a rehab loan. How do we figure that out?

It looks like the roof might have a leak or may have been leaking at some point. There is minor drywall damage. We assume it needs a new roof. 

Our realtor also found a septic inspection report from earlier this year that says the septic was showing signs of malfunctioning. It says there are some indications of a leaking tank.

One of the rooms is missing some flooring and someone ripped out a wall and there is drywall missing in that space and a plug and light switch hanging from the ceiling. In the back of the house the paint is peeling a bit and a few boards need replacing.

The house could be worth anywhere from $200k-300k and it's listed for $120.  We can put 20% down and pay cash for the repairs, except maybe the septic. We would also offer less than $120. Unfortunately we can't pay for the house and repairs in cash so we would need some kind of financing. An alternative option is that my sibling lives in the house after we have fixed it up, or we rent it out. 

When you get a rehab loan how do they determine what they want you to fix? Since with a rehab you have to pay contractors to do everything, does that usually make it not worth it to buy?