All Forum Posts by: Dane S.

Hi Blaine. I am not a big advocate for hard money just because it is expensive. Exhausting other creative alternatives first is preferred. Ex. 0% introductory APR on a credit card. Get creative let me know what you come up with!

Ill give it a shot answering your questions though. Hard money lenders are going to have different terms depending on who you use. Here is an example.

As is purchase price- 100K

After repair Value- 200k

Renovation Costs- 50k 

In this example you might put 20% down (20K) on the as is purchase price. The hard money lender funds the remaining 80% (80k) at closing and then funds the renovation costs on a draw schedule as the work is completed on the property. You might also expect to pay "points" up front which is an interest fee paid to the lender upon them issuing the loan. Another typical criteria is they will not want the all in loan to be more than 75% ARV. Id say this is the most typical type of scenario. The percentages might differ a little between lenders but over all this is how it would work. The repayment of the interest might be monthly interest only payments, no payments until after the project is complete or sold or somewhere in between. Good luck!

Thanks for you response @Kurt Dieringer. I have found out that the property needs to be zoned R2 for multi family. Would a variance be an exception to this fact basically? I have found a lot of single family homes zoned R2 which have the structure listed as SFD but the zoning for the property says “two family” on the PVA. Buying the right property knowing you could do some conversion could be a big win it seemsz I wonder if permitting or some other red tape would get in the way if you specifically targeted This kind of situation for value add. 

I have a property that has a detached garage that was previously used as living space/man cave. It has a furnace and a wall AC unit. It’s currently in rough shape though. The space is around 500sqft not including the actual garage that it’s attached to. Can I renovate this area to a studio apartment and rent it to a seperate tenant. What zoning issues have people ran into? Anyone tried this in there areas? Who do I talk to at the local government for answers? The PVA site says R-1C-Single Family Residence. 

The design is great. I like how light it is but it still looks very substantial. Did you choose this yourself? What is on the ceilings? 

Hello, I am in Lexington KY. I am young (mid 20s) and have similar plans as you. I’ll send you a request on here to connect! Good luck!