All Forum Posts by: Kyle Gregg

@Joseph Schriever

My loan officer recommended me a HUD consultant. I just searched 'HUD Consultant" on google and it led me to the HUD.gov site...you might want to check there. The company my HUD consultant worked for was Pillar to Post. They are an inspection company but he did 203k's on the side. You might want to find a local inspector and see if he does 203k's or if he has any recommendations.

I definitely had my contractors walk the property BEFORE i submitted my offer. Without a qualified bid, i have no basis to put together an offer. I had the realtor give me the lockbox code (not always kosher) and brought in contractors at different times. 

Once you get a good bid, you can figure out how much you want to spend in total, then make your offer based on that.

If you just throw together a random offer and it sticks, you might not leave yourself enough budget for a complete rehab...or end up spending more than you want (depending on what youre qualified for)  

I am about to finish up the rehab phase of a 203k in several weeks. 

I found several contractors on 203kcontractors.com and had them all walk the property and put together a proposal for me. I selected the contractor that worked best for me and pushed forward. 

You also need a HUD Consultant.

If you dont have any estimating experience, be careful with analyzing properties. Just as a reference, my 1000 sqft, 2bed 1bath rowhome received a full gut rehab and it cost me $68k with mid-level finishes. Seeing that you threw out 60K for 'a heavy amount rehab' in a 3700 sqft house sounds really low. 

I would get contractors in the house before even submitting offers. You dont want to put yourself in a bad position. 

Feel free to ask more questions. 

@Patty C. make sure you are 'mentioning' people correctly, doesn't appear to be working so people are not receiving notifications for mentions. 

Anyways, i think baltimore is more of a buyers market right now. I am planing to live here for 1-2 years then rent it out. rinse and repeat. 

@Patty C.

Hardwood floors just went in last night! the house finally is starting to feel like a home...i might post a rehab story once complete with a  ton of pictures. 

@Tamara Taylor

I did a standard 203k. I went through the house with the contractor to put together a scope of work. I had a HUD inspector also come a walk the house. Together, the contractor and HUD inspector put together a scope of work to submit to the bank. This will be what my rehab is based on. Once i closed on the house, the contractor was required to start work using his own funds up until the first draw ( i was scheduled 4 draws). When the contractor needs money, he contacts the HUD inspector to do a walk through. The HUD inspector puts together a draw request that we all sign and submit to the bank. The bank overnights me a check that i sign over to the contractor. Its a fairly simple process if your contractor knows what hes doing and has done 203k loans in the past.

If your contractor isnt up to the task with the 203k, find someone else. Definitely get SEVERAL contractors to provide you a bid...dont rely on a single number. I used 203kcontractors.com to find my contractor...and he has surpassed all expectations. 

The paperwork isnt too bad if you have a knowledgeable loan officer who can put together the 203k loan. The paperwork for the contractor isnt bad either, if he knows what hes doing....it all boils down to experience. VET YOUR PEOPLE! youre the boss of your project and you need to hire all the right people to get you where you want to go. 

GOOD LUCK!!!

For me, closing took several weeks and a full gut rehab of a 1000 sqft rowhome is looking to take 3 months. 

Depends on a LOT of factors. 

currently in the rehab phase of a 203k that's about to wrap up early September. The process has been great and i would suggest it every time. 

I am a strong believer in the 203k. I am currently in the rehab phase of one right now. I work a full-time job outside of real estate and i found that the 203k was the perfect introduction to real estate for me. 

Considering that you want this house to be your primary residence, i personally think the 203k is perfect. You only have 30k to work with so that doesn't leave you many options to purchase a house for $300k THEN do a rehab...

Do you work a full time job? do you have a lot of experience in rehabs? do you have experience with managing subcontractors? do you have experience with estimating work?do you have the man hours required to rehab a house in a timely manner? 

Rehabbing a house nights and weekends will take you FOREVER and will leave you with NO free time. If you have no experience with subs or estimating work, you will be left spending WAY too much money and possibly digging yourself a deep hole. Using the 203k and having an experienced contractor running your rehab will allow you to enjoy the rehab process. You will be able to do small things here and there, if the contractor allows. You will be able to do all the designing, picking of finishes, and watching the complete process with little responsibility on your shoulders. Its perfect for any beginner. 

Also, considering your $30k budget and using a 203k:

Purchase price: $300,000

Rehab: $50,000 

Total financed: $350,000

3.5% minimum down payment: $12,250

~6% closing costs: $21,000

Total required at closing: $33,250

Let that figure be an eye opener with what you can afford. $50,000 rehab might not leave you with much of a rehab. 

Feel free to ask me a ton of questions. 

I am not sure how it works with HUD homes but typically the seller pays your agent's commission. The only items attached to the loan is the purchase price of the property, the rehab, and any fees associated with your HUD consultant. mostly everything else is an upfront out of pocket expense.

i am in the rehab phase of a 203k right now so feel free to ask me specific questions. dont forget to include closing costs to the amount you need to fund the 203k. this is on top of your 3.5% minimum contribution. 

You must have a ton of patience with using a 203k. if you think it sucks now after a couple of days, just you wait...lets hope closing goes according to plan but some cases it doesn't. closing for me was pushed back numerous times by the lender (insanely frustrating). 

good luck!