All Forum Posts by: Darrell Hardy

You are doing and spending so much why don't you consult a commercial insulation and acoustics specialist. In fact if you a pulling permits you may get some leads at the building department. Also have you looked into insulation foam an d sound reduction memebranes?

I can't believe I missed this,

@Luay Rahil check with your lender first depending on your DTI and equity position it maybe possible to do an FHA loan, but only your lender can tell you for certain.

@Devonte' Dinkins the full 203k loan is fine and overall is a great product if you are qualified. Because you are taking on a 4 unit it maybe the more prudent move, unless the property needs either very little work, or you have the remaining funds to fine tune it.

Also be aware of the 203k/ Hud guidelines for houses with flaking peeling paint, as they may drastictically increase your reno cost. That is why getting a HuD inspector can be useful and a knowledgeable realtor can help make the process easier.

I tell my clients these things to make the 203k process a bit easier:

1)Have a contractor day within during the home inspection period (get three to four contractors to come out to bid on the project schedule them about 45minutes apart. (If you don't know any liscensed contractor ask the lender if they have a list of contractors that have done 203k streamline work in the past.

1a) Get a GC rather than a bunch of subs because the 203k funds will get chopped up into absolutely miniscule disbursements that will make it difficult to get what you need done)

2) Have a fairly detailed scope of work prepared for each contractor and yourself and add/subtract items that may come up as issues when talking with each contractor

2a) itemize your scope, per unit, exterior,bathrooms, kitchens, electric etc

3) Do not waste precious streamline rehab dollars on appliances save that for Lowes'/Home Depot cards after closing

4)Make your contractors bring a copy of their and insurance so as to not waste time

Bonus points: If doing a home inspection see who is a HUD certified rehab consultant (these are the guys who do the big 203k's and hire one as a home inspector, I've found this to be useful for my client's who don't like to listen or who have no renovation experience) It kills two birds with one stone.

5) Do the major stuff first, convert oil to gas, do a roof if it really questionable

6)Be prepared to spend your own cash/ credit don't expect the streamline to do every single thing it is a very tight budget especially when addressing multi unit properties.

7)know that your real budget is 30k as the last 5k is actually fees and a modest contingency

I could write more but this should get you started

College does not garuntee success but if you go into iit with a plan to capitalize on learning, the life experience, fun and the people you meet is truly a once in a lifetime opportunity. If I was to do it again I would still go to college but use real estate to both pay for it and augment an already great environment.

I feel with attorneys an important factor is one that actually can make time for you and get your questions answered without always billing you by the minute.

This type of relationship is built up normally over the course of multiple transactions whether it be tenant evictions, drafting addenda, or putting out fires that normally arise in transaction.

But for me good communication is paramount. If they never have time for my questions then they don't have time for my business.

Normally if you do not have 20% equity in the first property you will not be able to use the rents of the property to help count toward your DTI. So you will have to qualify for your second property being financially able to carry both mortgages plus have the six months reserves for each. Another poster may chime in but I believe this is how the Fannie Mae guidelines read.

If I'm not mistaken, after June 2013 FHA PMI will stay with with you for the life of an FHA loan.

1) When you go to refinance the chances of you getting a better conventional rate on a multi-family property will most likely not be possible.

2) In order to refi into a conventional loan you will need at least a 20% equity stake in a multi family residence.

There are a few other considerations but I think you get the gist of it, refying out of an FHA is not the easiest thing to do. With that said depending on your returns I would rather use FHA for my first property maybe even a 203k for renovations and keep my cash to pursue future properties. If you are comfortable with the returns you are seeing with FHA then use it if not put down your 20%

I also own multiple 1 bedroom and studio units, I would suggest you do not mention the baby at all as that can lead to fair housing issues. If anything in these situations I just raise the rent to compensate for the extra person. You know your tenant the best so if you like him enough you can allow it, if not tell him no.