All Forum Posts by: Ellie Johnson

We bought a property for $160K with a $226K rehab budget. After sinking $66k into it (demo and site prep) our GC left. New GCs and bids for the property show our previous GC SEVERLY under bid the project. To finish it will cost $370K (+210K). Right now the ARV is $600,000; with the Residential Infill Project in Portland, it will allow us to increase the ARV to around $750,000 by converting the house into a triplex. Our funding is basing the financing on 80% of the current appraised value of $600,000, loaning $480k. With all costs factored in (purchase, finance, holding) we will be all in for $625,000. This means we'd be leaving $145k in the deal. In the long run the value will be higher, and the area is also improving. The lot is large and we could add more ADUs onto the property to increase value further, but it would be a very long term play and will require us leaving the $145k invested in it for quite sometime. The other option we have is wholesaling the property now. So far the best offer we have is $190K which means taking a $40K+ loss right now.

Wanting advice, thoughts, ideas and input.

Thanks in advance!

We have a lot in Portland Oregon that can be divided into 2. We’d like to start the process and are looking to find out what the cost and timeline is. We’d love a referral of a civil engineer, as it is our understanding that is where we need to start.

The property is 60’x166’. The dividing will create a flag lot in the back side of the property. There is City water/sewer accessible. It’s in the Cully Neighborhood of NE Portland.

Thanks!

@Jaysen Medhurst thanks!

We are rehabbing a house right now with hard money. We want to refinance in July to a traditional mortgage. We will be living on the main level and renting out the upstairs. We started a new company so qualifying for a traditional mortgage is near impossible. Looking for a low interest rate and wanting to see if anyone knows of, or would want to partner on this. We’d be looking for a co-signer on the mortgage and pay a monthly commission for this.

We can get a bank statement loan for 5% interest. Whatever interested rate the co-signer can secure we’d split the monthly interest savings. So, for example, if they could secure a 3% interest and that meant a $400 less payment for us we’d pay $200 commission monthly to the co-signer.

The mortgage will be right around $412,000.

Jacob, thanks. I’ve reached out to her!

Hey!

We have a property in Portland Oregon we are rehabbing. When all is done we will have 2 units. We want to live in the main floor and rent out the upstairs. The rent upstairs will be $1500-1800.

We have a new business so traditional refinancing is out. We currently have hard money for the rehab and they do offer a long-term option but they want both units rented.

Does anyone know of a lender who will lend on an owner occupied rental and base qualifying off of property value, or another factor besides income or DTI?

We will have about $412,500 invested and the ARV will be $550,000 - right at 75% percent.

Let me know!

We did not do anything to the property before renting it out. The units each rent for $950. So far, we had to replace a wash/dryer and build a shed in the back to store the lawn mower.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $140,000
Cash invested: $28,000

Each side is a 2 bed / 1 bathroom unit. Shared washer and dryer

What made you interested in investing in this type of deal?

The ability to cash flow on day 1

How did you find this deal and how did you negotiate it?

Found a trusted realtor and had my sister-in-law to view the properties

How did you finance this deal?

Traditional bank financing

How did you add value to the deal?

Added wash and dryer

What was the outcome?

Higher rents and better tenants

Lessons learned? Challenges?

Make sure the area you are looking in is good for renting