All Forum Posts by: Mike Wood

@Rob Sahney  I think you will be asking for trouble if you try and keep the entire security deposit for the marks shown in the photos.  I also think that $2800 to replace those countertop is stupid crazy money.  Around me, you can get prefab granite or quartz for less than that price installed in a kitchen that small.

I also agree that since these a butcher block countertops, they can be sanded down and refinished. Thats the appeal of butcher block countertops (and the cheap material costs, an 8ft long piece of countertop is only $269 at homedepot). I think your being very closed minded thinking that they must be replaced (which I would not as other said, since they do not hold up well).

I would see if you can find a carpenter or flooring guy that can give you a quote on sanding and oiling (using the proper food grade oil for butcher block countertops).  My guess is it would be less than $1000, and likely $200-300 (that all it would be worth to me).

@Samir Solanki Fannie/Freddie compliant 2-4 unit investor loans will have a max LTV of 70% on a cash out refi. Purchase would be max 75% LTV on 2-4 units. Unless you are able to place this loan with a private lender, those are going to be your limits.

Your interest rate is very good for a non-owner occupant loan.  Also, refi appraisals will almost always come in below market value.

@Donna Pattani  If you call around to your local banks, I think you will find that a construction loan is not going to be feasible given the numbers that you mentioned. None of my local banks will write a construction loan on a property that has an existing loan.  Some may allow the existing loan to roll into a new construction loan, but most banks will only loan 75-80% of total costs (some my be as low as a LTC of 70% for new construction with no experience).  Long gone are the days what banks will loan on estimated appraised value, allowing you to borrow all of the construction costs.

I agree with other that the best play may be a renovation/repair of the existing house and investigate adding a ADU if allowed by local code.

Also, if the lot without a house is not worth $120k, forget about bull dozing this property and think about just looking for an infill lot to build.

@Amie D. Did you stated what the house needs? You stated it need needs to be repainted inside and two (2) floors refinished, as well as a deep clean, but maybe that is what you did ten years ago.  $2200 is not alot of money for what you described, heck around me, painting with materials a 700ft2 house would be almost $2200 alone.

@Account Closed Yes, as Gabe stated, all rough in and the tub are installed first. I try and protect the tub as best I can, using the original cardboard packaging as a make shift cover for the tub.  As I mentioned, the drywall guys are quite messy, and drywall mud always gets everywhere on my builds. For me personally, I typically prime the space and most time even paint the ceiling and walls before tile.  I just find it easier to paint before everything is finished, but understand that most wait.  I do use a paint sprayer for the most part, as we are painting an entire house (as most of my project a full new construction).

@Account Closed  I always let the drywall be completed first.  To messy of a job to worry about finished tile.  I have the backboard (I prefer cement) installed at the same time as the drywall.

@Chris Sweeney  Try Wilmar.com, its Homedepots multifamily company and still sells the corded cheap blinds.  I recently order enough for two (2) units from them.  Same basic blind that they used to carry in the store (but have eliminated for pricer cordless miniblinds).

@Jeremiah Gaviña If you have no experience with new construction, you might be much better off finding a builder or GC that does new construction.  The builder or GC will cost you about 20% of the build, but if you do it yourself (act as the GC), then you will spend tons of time and effort on the build personally.

Two major things to consider with acting as your own builder/GC is 1) will your bank financing allow it and 2) will your local city/county allow it.  

Generally, since you will not owner occupy it, getting construction financing will be tough, and with no experience with construction, getting a construction loan while acting as your own builder/GC could be impossible.  Also, most city will require a licenced GC on a new construction project, especially since you do not plan on owner occupying it.  Getting your GC licence and insurance may not make sense for one (1) build.

Home Depot/Lowes/etc are not really setup for full new construction. One big issue is material delivery, the big box stores are just not setup for it.  Nor are they any help with material takeoff and ordering assistance.  They often do not have job quantity size inventory.  I would reach out to local supply houses (lumber yards, sheetrock suppliers, door & window suppliers, insulation suppliers, etc).

@Account Closed In most cities/counties 1-2units are built under the International Residential Code (IRC), suitably amended by the local city/county to suit their specific needs, while 3+unit buildings are built under the International Building Code (IBC). The exception to this would be row townhouses, which fall under IRC. 

While for small/medium residential 3+ unit buildings (4 stories or less), alot of the code is the same, there are some pricey differences, particular in the safety, access and fire protection section.  For example, unless your specific city/county has amended the IBC, 3+ units are required to have a sprinkler systems, which at its cheapest is a $15-20k adder for a 3-4 unit.

@Jim Peterson  I don't have any experience with module housing, but would imagine that your options for modular 2-4 unit building is super limited.  Additionally, your not likely to find anywhere a modular company building a 1/1 fourplex, its just not common.  Also, why are you focused on modular?  When figuring out all of the costs, most folks dont see alot of money saving over stick built.  There are some area of the country where it might make sense due to seasonal issues (like not be able to build in the winter).

Additionally, based on my experience, the 4 plex is going to be cost prohibitive due to the different building code that 3+ units have to comply with.

Is there a high demand for 1/1 unit in your area, outside of traditional apartment complexes? 

Lastly, most banks are going to be much more willing to finance a construction loan on a duplex than a fourplex, just because there is much more demand for them.  Also, if you have "half" of the costs, you should not be having any issues finding a bank to do the construction loan.  Start with local banks and let them know what your trying to do.  Forget about the big banks, its just not what they do.