All Forum Posts by: Kyle Gregg

Another point to mention is that the amount you qualify for less the cost of acquiring the property isn't necessarily what you can allot for rehab. Based on your HUD consultants appraisal, the rehab may require a 10-20% contingency reserve for any surprises and unknowns about the property. This contingency will eat up some of your total rehab allowance.

Is the property sold 'as-is'? Can you request the seller to install a bathtub? As long as you are not making an unreasonable repair request, it is in the sellers’ best interest to pay for the repairs.

dont forget to '@' people so they can get updates when they are mentioned @Nicole Brush

I would reach out to a local lender that is experienced with 203k loans and get pre qualified. Thats a good starting point to figure out how much you can spend/afford. From there, your lender can provide a approved licensed contractor and a HUD consultant who will inspect the property and will write up a scope of work and a bid for the rehab.

I would definitely look into a 203k since you are only putting down 3.5% on the purchase price of the property and financing the property and rehab at a decent rate around 5%. I dont see an easier way in!  

@Ned Carey 

Gotcha. Yeah, i wouldn't think filling a basement was a logical solution. 

haha but now you know! good luck with renting it out! 

I dont think my boss would like this very much if i wore this into work....yup im buying one!

Have you explored other methods of advertising? CL is a great resource but you have to try elsewhere. Do you have a FOR RENT sign on the property? Any local REI groups in your area that you could connect with? I know i see tons of emails from my local REIA of tenants looking for rentals.

Will the numbers work if you ARE paying for converting the building into a legal fourplex? I think you should factor in these cost assuming worst case scenario. I dont know how the legalization process works or how much it costs, but to NOT factor these costs would be a mistake. 

Can you convert it back to a 2 unit, since thats what its currently zoned for? 

Check out the Rental Calculator under the 'Analyze' tab above. That will help you better understand the ins and outs of this deal. 

How will you be financing this? Can you get in a lower offer due to known issues with the duplex? Have you factored in taxes, insurance, property management, maintenance...etc?