All Forum Posts by: Dylan H.

Our tenant was out of power because we had to replace our breaker box, partly due to a storm recently, it took 3 days due to July 4th weekend nobody was available. We put the tenant in a hotel for 2 nights while we tried getting someone out to replace it. Are we required to refund them for the food that spoiled or is that a courtesy? We are from east Texas. They are asking us to let them use next months rent for groceries which is 695. Any advice will be helpful. Are we required to refund residents? Are we required to relocate them? )The breaker box is fixed now)

Anyone have any information on Joseph Chillemi from Newton MA and/or the Private Money Exchange? About to take a 10% loan for finishing my flip off for about 100k and wanted to see if anyone had any experience before I sign my life away. Thanks!

Hey, 

I recently bought a lot in Joplin, Missouri thinking I'd build a single-family home on it and sell it.  The appraisal came in under what the cost to build would be and I'm now considering selling the lot, moving forward with the build and hold/renting it for a couple of years or building a duplex instead.  I have not actually built anything yet, so the cost to build is based on the lowest bid I've received. Here are the details and I'd love for someone to help me find the best option forward. WHAT WOULD YOU DO IN THIS SCENARIO?

DEAL DETAILS: I can give more details if needed.

All in on property: $195,000 (including purchase of lot, plans, survey and cost to build)

Appraised at: $187,700

Bank will loan me 85% of appraised value, which is: $159,545

I'll have to bring about $35,500 to the deal without the potential of getting that money back when I refinance because the cost to build well exceeds 80% of appraised value.

Potential Rental Income: $1500 (very confident I can get this)

ANALYSIS

I've included a best case scenario Rental Analysis below, and below that are my potential exit strategies as I see it: 

View report

*This link comes directly from our calculators, based on information input by the member who posted.

EXIT STRATEGIES

1. BUILD & HOLD: Build the Single-Family Home I've outlined above and rent for $1500/month.

2. DUPLEX: Build a duplex instead (lot is zoned R2). Problem with this is I'm afraid I'll run into the same problem of not getting a favorable appraisal. 

3. BUILD & SELL: After looking at comps, I'm thinking the most I can sell this house for is $205,000. That is best case scenario. So, I'd net no more than $10,000.

4. SELL LOT: I bought the lot under market value, so I'm thinking one exit strategy is to just cut my losses and sell the lot to recoup my money. 

Thanks a ton, 

Stephen