All Forum Posts by: Frank Hinck

@Jerryll Noorden

Thank you for the copy+paste Reply

@Matt Tennie

First save up 6 months mortgage payments in an account (plus $1,000 for emergency CapEx repair) before you start saving towards the next house, especially with evictions canceled currently.

Then: Save the extra for the next down payment. Paying extra principal - ok it’s a fine idea but when you ReFi equity cash out you’ll only be able to take 70% of equity, so you’re leaving 30% of the money you would have had in an account - and leaving it in the house equity.

@Karly Wright

Buy a window unit for $150 for the bedroom and he should be so lucky. Take it out yourself when the weather changes and sell it on marketplace for $100. Make sure to exclude t. AC on the next lessor.

@Marshall Hurley

A hard money lender will not fund a House Hack since they can not lend on anything owner occupied, so an equity partner would be the way to go. Can I ask what's stopping you from getting an 3.5% down FHA loan, and funding the construction with a 203k loan (also an FHA product). An equity partner would either ask for guaranteed $ every month regardless of your cashflow, they might ask to be bought out after a 5 year balloon, or might ask you to pay a fair rent (not just let the tenant pay rent) so they can make sure equity is growing in the property. With an equity partner you will likely need a private loan not an institutional lender. Best of luck!

@Nick Webb

You didn’t’ say anywhere that Realtors were involved in that referral fee transaction, I’m not a licensed realtor so I take back that comment.

As I hear (again not a realtor), as a realtor you have a fiduciary duty to the seller so there are some major disclosure documents to have the seller sign before doing a wholesale.

Non licensed wholesalers do referral / finders fees & JVs all the time though.

@Zach Rozmarniewicz

So much to unpack here. I agree don’t over improve, but do try to “tenant proof it” with materials that will last (go laminate not carpet, or carpet in bedrooms only and don’t be afraid to change 1 carpet in the future it’s OK). Paint it all 1 color with 1 accent color in 2-4 places, make sure it’s common SW or Behr colors and let the tenant know in writing what the colors are so they can repaint to your original. You will stick out like a sore thumb to contractors so I’d either use a Const Project Mgr the first time or a really good GC and pay them well.

@Robert Ortiz

Is this for your property or a commercial property & business you’re starting? Some questions that’ll impact SF pricing: Dirt floor or concrete pad, Fully enclosed or open, if enclosed-insulated/heated/electrical/siding/interior finishes, what’s the clear height, what’s the span between columns?

You don’t have to answer, I won’t be able to throw a dart at a price, just things to consider for yourself and thoughts if you speak with a local contractor.

@Jesse Easter

Let that deal sit for quite awhile longer. Structural repairs you need the right masonry contractor for, many times they won’t warranty the work unless they do it their way. Could still have potentIal water leaking. I’d carry a big contingency. This might be one to pass on, could be way more brain damage than you accounted for.

@Greg Todrank

Pay them as if it’s occupied if that’s OK with them, honestly they’d be doing you a favor doing it that cheap. Otherwise 5-10% of construction costs especially if they’re sourcing the vendors, project managing, getting LIEN WAIVERS very important, and coordinating Punchlist.

@Rodneisha White

Mills and factories are running less labor due to Covid restrictions so we’re seeing material cost increases and or material shortages. Steel stud is good but you’re carpenter needs to understand doing it, plus no warped wood or termites in the shipment.