All Forum Posts by: John Currey

it is hard to say based on the location and current going rate of houses in the area. most of what sells nearby is mobile homes, the ones on land with relaively nice interiors go for 125k, houses go for 150k to 200k but they are all 2bed 2 bath and mine is only a 2 bed 1 bath though simumlar sized. 

I would like some advice on debt consolidation

I have two properties one is my primary residence which appraised for 143k in 2023. I’ve done a complete renovation with new paint removing musty carpet and wood panel walls and replacing it with lvp. I have added a half bath. The house is 1400 sq ft and was bought for 99k I now owe 89k on the loan. The current interest rate is 7.85%

I also have a flip house project. I bought it for 48k and have fully remodeled the interior. The remodel has cost roughly 15k in materials and holding costs and that's not counting my labor, which I would like to be paid at least 12k for. So if I want to make any money on the flip beside my labor costs, I would have to sell it for more than 75k. It appraised for 80k when I bought it but it is still in rough condition on the exterior and had some quirks So i am worried it won’t sell or that the buyer will not be able to acquire a loan. I would like it to sell for 100k but I would settle for 85k. It is in a rural area so its not exactly a hot market.( in the ozarks) rent of a relative new duplex down the street is 1100 a month, and that covers trash, internet, utilities, and groundkeeping.  I owe at least 43,114.16 on it by drawing on reserves from the construction loan.  

That is my sitiation. Now what I would like to ask is would it be a good move it I had to turn the flip into a rental to consolidate all the debt into my primary residence. By refinancing and taking some sort of home equity loan. Then perhaps doing an seller finance deal on the flip house or a rent to own agrement.

I know I could do a lease with an option to buy and just keep the mortage as it is. 

but I also know I could do seller financing and do away with any responsibility to pay for insurance or anything like that. But I assume that would require me not having a mortage one it.  

What would the pros and cons be of doing this. What are the risks?

I recently talked with a mortgage broker and me and my wife didn't qualify for a loan on  an investment property. I'm honestly surprised, right now our only debt payment is a 857 mortgage, no car payment no student loans no credit card debt, and good credit 740's. she doesn't make just a lot (41k a year) but with the 857 mortage payment, her debt to income shouldn't be much over 25%. Would we not qualify for a 55k loan? 

I've been listening to several of the BP podcasts mentioning seller financing. It's sounds like a great tool at times. What I don't understand is how you get the money to people. 

let's say you buy a 100k house on seller financing with 0 down and 1k a month payments. Am I mailing a check to the seller every month? 

pace Morby tells a story about buying a truck on seller financing, how would he make payments on the truck? 

I'm about to start calling contractors to see if I can get them to do a walk through of a potential deal I'm looking at doing. 

is there anything I should have for the contract? Do I need to provide them with a scope of work or will they look through and give me a general cost for different aspects of the house? 

when I was house hunting I was looking at some pretty run down places because that was what we could, they were all vetoed by my mortgage broker because he didn't work with anything that required rehab and they wouldn't offer the 203k loan. I haven't seen any podcast episodes mentioning this loan. Does anyone use it? 

In an on the market podcast I listened to recently they talked about underrated cities and mentioned population growth as one of the metrics used gage whether it was a good investment. 

Where Would you even find this data? My county (Taney) doesn't have a town over 10k, is there data for towns that small?  

refinance would be the exit strategy. 

my wife and I just bought a house and it appraised for 43k over what we're buying it for at closing. 

we are in the process of renovating that house so hopefully we can increase that value even further. 

I've been looking at some distressed properties in the same area and trying to figure out how to fund them. The lender on my current house doesn't do anything requiring a remodel I get the impression that's most lenders aditudes. 

would I be able to fund a hard money deal on a distressed property with a heloc or home equity loan? Is there a better way to fund a deal that would involve a large remodel?