All Forum Posts by: Nate Bell

@Uday Raju

I’m in Oregon. This “fixer” is $150-$200k, and you’re still going to end up with an undesirable property. You’ll attract the kind of people that will tear it right back apart.

@Kenneth Garrett you can golf in most parts of Florida 😏

@Theo Bandy. Sorry man, but don’t be your own GC on your first one. It’ll be a miserable experience for you and your subs, and they won’t want to work with you again. Chalk the first one up to a learning experience, be grateful if it gets done on time and on budget, and then think about being your own GC. I grew up with my Dad as a GC, I’ve built three homes myself, and have had 3 others remodeled with a GC. After literally 10,000 hours doing stuff myself, I still can’t match a good GC and his subs in any respect; cost, schedule, or quality. Just bite the bullet and let a pro handle this.

@Ryan B. awesome

@Bill Rich, I went through the 203K process 8 years ago, I’m doing another one now, and what he is saying was/ is true for me. The lenders are detached from the process, contractors need to be paid, and the owner ends up making up the difference. And, yes, if you don’t have a dumpster or doorknob accounted for, it’s an out of pocket cost, or a bunch of paperwork. Anyone entering a 203K should have 20% of the project cost available to spend at will and the MAY get it back as a change order at the end.

@Jason DiClemente it’s a 203k rehab loan. I’ll put about $32k down. This area is tough man, everything is expensive. And yes, I could scale back the remodel a little, but I don’t wanna be a typical (don’t take this the wrong way) “slum lord”. I want to rent a nice property to nice folks with good jobs.

@Henri Meli

Maybe so, but at this point, I want to have an eye on my investments. And I’m guessing that the appreciation there is minimal. This property will probably double in value over 20 years.

And no, I’m doing a 203k. Putting about 32k down and the rest is financed through the rehab loan.

I’ve got a property under contract for $161k in a strong rental market. It’s a ranch, with a full/ partially finished basement. I’m going to turn the basement into a second unit. The house was built in the 50’s and has a lot of deferred maintenance, interior and exterior. I’m looking at about $130k remodel, upstairs and downstairs, plus contingency. Mortgage would be about $2k/month, and full rental rate would be about $2400/month. Would you feel good about this? It’s in a booming/ appreciating market. I feel good, but checking in...

@Dennis M. this is the most leveraged Americans have ever been.

https://www.google.com/amp/s/www.marketplace.org/amp/2018/11/20/economy/household-debt-all-time-high-holiday-spending-season-arrives

We have short memories and are inherently irresponsible.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $150,000
Cash invested: $100,000

Converting this 2200 SF 1950's ranch into 2 units- upstairs and downstairs. Last owner let renters destroy it. Full remodel. Financed through a 203K Rehab Loan.

What made you interested in investing in this type of deal?

Affordable, I have similar experience from past deals, strong rental market

How did you find this deal and how did you negotiate it?

MLS, unconventional financing

How did you finance this deal?

203K Rehab Loan

How did you add value to the deal?

Planning on full remodel ~$100K

What was the outcome?

Not complete

Lessons learned? Challenges?

Asbestos