All Forum Posts by: Kyle Penland

Hard money will not lend on owner occupied homes. Check with a bank about getting a line of credit?

How do you estimate 100-200k. You need to get your numbers down before you go making an offer. 100-200k is just a guess...what if you didn't estimate properly and its 250k? There is no way anyone can advise you with such a big reno range.

It's all about how you manage the property and what money you sink into it. When you are in this price range you have to get creative. Please feel free to reach out to me to discuss how I make my properties work.

Thanks so much for the kind words!  I certainly appreciate it!  Its actually a brown on the walls.  Also if you look close, you can see instead of using dry wall, I used wood siding for the walls...Makes it really hard for a tenant who has had a bad day to put their fist through the wall.

@Ricardo S. I'll check with my loan and see but I think the reason I can get these kind of terms from my local bank is because I am a known person to them...I have a business account with them, as well as several other accounts.  If he is open to other investors with lower loan values, I'll pm you his information.

@Daria B. I'm not too concerned with the white cabinets...They are oil base and pretty easy to clean.  I wouldn't put them in my other properties but when I rehabbed this home, I did it to attract someone who might be a long time tenant so I am willing to take the chance on white and worst case scenario paint wise, I'll have to add another coat to the doors.

So i bought this home as a foreclosure, termites, rot, holes in the roof...I bought it for 3500!   I actually fell through the floor in the bathroom during the final walk through before closing.  I put 25000 into the rehab of this home and replaced most of the floor joists in the kitchen and bathroom as well as sub floors and floor coverings. I just wanted to share my handy work!  Time frame was  6 weeks mostly because I only had 1 helper on the job until I pulled my property managers team in also to finish up.  Its on the market now to be rented and hoping to get 600 a month.  I financed it with a local bank and pulled 23k back out and it should net me 190 a month.  Just wanted to share!

Why don't you take a line of credit on the first property up to 75% of the value that way you have the money there, but can use what you need...Call local smaller banks...I had my best luck with a local bank in my home town...Best service around.

Ok, long story short, I am buying properties with a cash offer and rehab, and then refinancing them after the rehab is complete usually about 4 months down the road.  I have a property that I bought for 3500 bucks, and put 25k into it.  The real estate appraiser only used FORECLOSURE comps!  I could throw a rock and hit a house 4 houses down with 1 extra bathroom that appraised for 68k and its the same materials...  I could understand if I had her appraise it when I bought it, but honestly its almost a new house...New floor joists, all new flooring, new kitchen etc...  Do I have any recourse in this?  I just don't understand how she would appraise a house and only use foreclosures as comps 4 months after the sale and after it was completely renovated...  Needless to say, I have 30k in it, and it appraised for 21500.  Anyone have any advice here on how to get my money back out of it?

You will never have a perfect property...If you do, you missed something maybe?  Get a quote to fix the foundation in writing, deduct that from offer, or add to offer that seller must fix foundation using the contractor you selected or one agreed on by both parties...Simple as that!

If you are spending 45k and thinking you will get 1k a month, you might want to rethink it. Ask a property mgr about the area.

I carry 500k liability on each of my properties and also have a personal umbrella of 1m covering all my assets.  My insurance broker was the key in helping me understand all the fine print.  I would suggest finding a insurance broker versus going to a specific provider.

Just as added info, when I switched from State Farm to having multiple insurance providers, I was able to save almost 1200 yearly because they can find the best and most reasonable price.