All Forum Posts by: Deonte Hill

@Deonte Hill

The only way you will get 100% financing for an OTC is if you are vet.  If not, you'd need to have at least two completed builds in the past 2 years AND were on title (even then, this lender would only do as an investment, not as a primary).  

Purchasing an existing structure and adding an ADU or renovating is becoming all too easy these days. You can use a conventional based or FHA based loan to do this. If you are unsure of specifics, you should speak with a mortgage broker who can dig into your specific details and help determine what you may qualify for.

Cheers!

Quote from @Deonte Hill:

Hello all,

I am looking for recommendations for a lender who will fund the acquisition of land and the cost to construct a duplex. This would be my primary residence and would also like to use my VA loan.

Thanks!

 Hi Deonte - I use a couple different lenders in the area that likely can help you. Shoot me a direct message and I can share their contact information. 

That is a small kitchen so looking at less than 10k all in, the flooring 7-8k if you are using a life-proof style LVP and drywall/paint about 5k based off your SF. Bathroom depends on if you are swapping out your walk in. But if it’s just a new vanity, TP package and shower door looking 2k or less. I'd say your safe at 30k 

How many SF ?

Quote from @Deonte Hill:

Hello all,

And thank you in advance for your input. When it comes to rehabs, I’ve seen in the forums a good rough estimate is $20-$100/sqft, dependent supply the severity of the rehab. I’m looking to purchase a property and the house seems in pretty decent condition. Just needs to update the kitchen cabinets, appliances, bathrooms, and some paint. Would be too far off to assume a a rehab cost of $40k?

I’ve attached some pictures for reference.

Depending on what you are doing with the unit I don't see $40k in costs there. I see perhaps a new kitchen, paint and maybe a little flooring. 

The only quick number there might be is doubling the cost of materials to add in labor, but that's not guaranteed - some jobs have few materials and a lot of labor and others are opposite.

I usually tell my investor clients that if the building itself will be in a flood zone (not just parts of the lot), it's not worth the investment unless it's a steal and you're able to pay off any mortgage easily if flood rates rise ridiculously (and you can afford to pay for any flood damage, yourself).  There's so much fluctuation in flood insurance policy right now that rates could drastically rise; I think right now they are allowed to raise it 15% per year even in owner-occupied.  You're stuck paying it if you have a mortgage because the lender requires it and can force-place it on you if you cancel the policy.  And others have pointed out that building in flood zones can be much more expensive with special permits, requirements like living area starting above base flood elevation, probably more than the $25K difference in the lot that's not in a flood zone.