All Forum Posts by: Derek Walvoord

This is a good group.  I will try and be there.

Derek

Hello All,

Thanks for the comments.  The 2 unit (water records may give me a garden unit, adding a third) was 65K, and it needs about 35K in work.

I decided to do a member blog here:  https://www.biggerpockets.com/blogs/7622/47674-pre....  So, I will post pics as I go.  I think if you right click on the abbreviated link above, it will take you there.  For some reason, I am having a hard time getting back to my own blog page.

The first floor unit is in pretty good shape, the second floor needs some work, but is pretty cool.

Boiler back on (building empty, but professionally winterized, for 2 years), electric updated, now we are starting the plaster work, etc.

The units should rent for about 1100-1200 per month.  I have an interested Section 8 renter for the first floor unit.

Derek

I have flipped a few houses, but wanted to try keeping and renting.  I just closed on a jumbo two unit in the Woodlawn neighborhood of Chicago.  2 3/2's.  First floor is in pretty good shape, and the second floor needs some work.  As a bonus, I found a secret safe on the second floor behind a sliding panel!  Unfortunately, the safe is empty.  The guy who owned the building in the 40's-60's apparently was involved in "the numbers".  If I can figure out how to post pics, I will do so.  I might start a blog here on the site to show progress.  Thanks all!  Derek

I am thinking about using them.  They seem pretty slick (in the good way), with their user interfaces.  I had a really good talk with one of their loan officers.  I'll let you all know how it goes.  I did get a pre-qual letter very quickly from them, which is helping with negotiations on an offer that is outstanding.

I am trying to get a HELOC right now. I have a really nice LO at the bank, and we have literally gone back and forth about 5 times with scenario's that would work or not work. I am trying to do debt pay down, and she has been really nice with my "what if we. . . " questions. It was really interesting, I think on one of the podcasts, they said not to take no for and answer, or if the answer really is no, ask why. That has transformed my relationship with lenders. If I know the why, then I can ask questions about what we could do differently. The HELOC was "denied" five times, but we were able to get it resurrected, at least so far.

That being said, I agree with @Nick Britton above.

Just a quick thought.  You could use bankrate to find a different lender, or get a personal loan.  It seems like personal loans are starting to come back, at least looking through my junk mail.  

I used bankrate to find a few HELOC options. Not all bank guidelines are the same. If you have that much equity in your home, you could talk to your existing bank to see if you rolled some credit cards and other things into the line, whether that would bring down your ratio's. I am currently doing that, and I first was not accepted because of ratio issues, but I rolled a couple of credit card balances into the HELOC and then the ratio's worked (I had a really nice LO who let me run a bunch of scenario's by her - the first no may not be the end. I pushed it about five different ways with the "well, what if we did.....")

The main issue is that you are in a really fast time crunch.  I know a lot of people don't want to do this, but I did use 20K of credit card balance once when I was in a crunch.  Just a thought, and I know you need 60K'ish.

Good luck!

Welcome!  There are a lot of good meetup groups in the area as well.

@Brie Schmidt has a really good group that meets on the NW side, and I also like the Southside Builders Association, which meets the first Wednesday of the month at the Erie Street Cafe.

I drive a lot of the neighborhoods for work, so feel free to reach out if you have any questoins.

Derek

When I applied for a hard  money loan, I put my website in the application, which shows addresses and before and after pics for a bunch of the rehabs I have done.  I did not have to show HUDS, but @Account Closed, that is a really good idea.  I wonder if I could fine all of mine quickly. . . .

It might take me little time to round them up.

I agree with Redfin and finding a good Realtor.  As a first time home buyer (I am making an assumption. . . ), there are a lot of Realtors that would like to help.

House hacking is a great idea!  Good luck.

Good luck! I think there are still good deals on the MLS up there. People seem to be starting to deconvert 2-flats into SF as well to get the cost differential.

I bet you can still find something good on Trulia/Redfin.