All Forum Posts by: Joshua Carter

Seeking info/advice around making an offer on my first investment property....

I'm working to get an offer accepted on my first investment property (BRRR on a triplex on a double lot in my local market). The seller are I are getting caught up around an issue pertaining the utilities. Currently all 3 units are vacant and all utilities have been shut off and winterized. I would like the utilities to be ON during the inspection period, and the seller isn't liking that. It sounds like the only situation they are open to is having me set up an account on the property with the utility companies in my name and agree to have all the gas and water lines air tested, turned back on, and also re-winterized should I walk away from the deal. This will all cost over $1,000 and seemingly require some weird back and forth between myself, the seller, and the utility companies around order of operations to make this happen (which equals a bunch of my time). All of this, just to get the house ready for inspection; and then there are still a handful of unknowns that could kill the deal during inspection.

On one hand, it seems crazy to invest that much time/energy/money into a property just to get it ready for inspection.

On the other, it seems like a silly variable to potentially kill the deal- I've gotten seller down on the price quite a bit and I do feel pretty excited about the property from what I know about it so far, but the projected rehab budget is already stacking up and I'd like to have as much info as I can possibly get regarding other potential rehab costs. 

Thoughts? Ideas? Feedback?

Thanks in advance to all of those who kindly share their wisdom and insight so freely here!
 

That seems to be what I'm hearing in regards to DSCR as well.

Thanks for the additional tips too Khari!

Thanks for your reply Stephanie,

I'm unclear as to why I would need to move into the newly purchased property from my current home? I've been looking towards a DSCR loan as a potential answer to my dilemma, why could't I do a DSCR to refinance the new property? It would be a non-owner occupied investment property. What am I missing?

Thanks again!

 Hi Khari,

No, not trying to refinance my current home.

I plan to buy the investment property with cash, then refi after rehabing it. I'm wondering about qualifying for the refi loan on the new property so I can get my equity back out of it. 

I appreciate the reply!

Hey folks! Big time fan of the community, first time posting here.

I'm hoping to purchase my first investment property by the end of the year and hope to implement the BRRRR strategy. I am looking for insight/advice about qualifying for a cash out refinance loan. I have a pretty nice nest egg of cash available that I plan to buy and rehab a property with (approx. $100k), however I'm curious/concerned I won't qualify for the refi loan. As it stands, I only make $50k/yr. but am also considering leaving my current w-2 job and going back to being self employed in the trades as I've done in the past.

Does anyone have insight around what I'll need to qualify for the refi loan in general, and if a recent career change will be hurt my approval odds? Or any general tips given the situation Ive laid out in? I just purchased my first home 2 years ago, so I'm pretty novice to the whole loan process in general. I'm doing my best to do my due diligence before I start making big moves.

Thanks in advance!