All Forum Posts by: Jonah Caliri

Listed for 200K, bank owned. Tax value: $320K. Needs power turned back on, a few rooms are stripped to the subfloor, there is likely some electrical work that needs to be done, and possibly a well pump to be fixed. The walls are wood paneling, so they do not need to be painted, WA-required water heater straps and carbon monoxide detectors and possibly an insert for the fireplace and chimney. That is my initial assessment, but I haven't had an inspector check it out yet. It is in an area with 8% annual growth and is very close to a new distribution center that recently opened in Spokane, which has skyrocketed property values. Also comes on 10 acres of land which could be added to later. What do you think?

@Shiloh Lundahl @Jeff Ronningen Thanks for the critical feedback gents. This is my first deal and am still learning the ropes. It is nice to get a reality check in addition to all the encouragement I have been receiving. 

Shiloh, do you recommend have 20k saved on top of the down payment or 20K saved in general? I have done an excellent job managing my personal finances and save/invest nearly 65% of what I make every month. It would take me about another year to save up an additional 20k on top of my existing reserves. 

Jeff, I have been speaking to a few lenders (though I don't know how good they are) and they seem very hesitant to lend money on property needing repairs. I have yet to find a lender that will provide a VA rehab loan and most others are unlikely to issue out a 203k loan. Any suggestions?

@Sue K.

Hi Sue, can you tell me more about these programs? I would definitely qualify, as this is my first home.

@Paul Welden

That is great news. Thanks Paul!

@Paul Welden

Thanks Paul. My real estate agent told me that banks aren't doing rehab loans right now because of the coronavirus market situation. Have you heard anything about this?

If that is true, do you have any other suggestions?

@Aaron K.

Thank for replying so quickly, Aaron.

The house is currently bank owned. Could I get the bank to finance the house and possibly the repairs? If so, what would be my next steps?

I found a great deal to house hack with lots of potential to build equity with a few repairs. I would really love to make a move on it, but I am running into issues getting it financed. I don't have enough cash reserves for 20% down, but I have enough to do 5% or possibly 10%. I have access to the VA loan, but this house will not qualify because of the needed repairs. The location qualifies for a USDA loan, but I am not sure of the extent of needed repairs the USDA will allow. I am considering a 203k loan and refinancing into a VA loan after 6 months.

Does anyone have advice or a creative strategy for getting this deal finaced?

Has anyone used this loan and could you explain the process? What is your overall opinion of this loan type? Is it useful for house hacking?

Are there any better alternatives?

Thanks in advance for any guidance!