All Forum Posts by: Sarah Shockley

Definitely talk to a lender first!

Otherwise you can waste a lot of time chasing properties that don't work out.

Also - your budget and loan limit influences what investment strategy you should use. A 4-unit needing renovations might be out of reach, but 4 single-family homes might be attainable.

Your lender will also tell you how much down payment you will need for different types of properties - which is important for those of us with limited budgets (myself included!) 

@Lisa Emerson

Hello! I've used few inspectors recently that I can recommend:

Michael Kersey - Allstar home solutions

Michael Munn - Biltrite

I know Mike with Allstar also does WDO inspections. Cost for a regular inspection is around $300-$400, and the WDO is around $125.

Oh boy. Sounds like the issue isn't so much the age of the property, but the condition (although they are related). Most insurance companies have standards the property must meet in order to qualify for getting any kind of policy.

Usually the insurance company will require a "4 points" inspection - Roof, HVAC, Plumbing, and Electric - and those 4 things will need to be in generally good condition. You should have at least two options though - 

1. Getting an insurance policy that doesn't cover the defective item - like the roof. So then if damage occured to the roof or because of it, that would not be covered by the policy. A policy like this is usually less expensive than a regular policy with more coverage.

2. "Construction/Rehab" policy - this is a type of policy you can get to cover the property while extensive renovations are occurring. Then once the work is done you get a regular policy. Typically twice as expensive as regular coverage.

Also, are you purchasing the property with a conventional loan? There are also certain criteria the property will need to meet to qualify for getting a loan.

I've used Brightway Insurance to source coverage for my properties, which are all built in the 20s and 30s. People's Trust is my insurance carrier for all of my multi-family properties, and I have American Integrity for one of my houses, with a policy that "doesn't cover" the roof.

@Jeffrey Wardlow I feel your pain.

I've used the same lender for my past 5 purchases/refinances, because he's a creative problem solver and can actually get the job done with complicated transactions - like for investors with multiple properties.

He straight up told me most banks won't do loans at $50k or less - it's the same amount of work, or more, for less pay than a transaction for a more expensive property. So they don't want to bother with anything less than $100k most of the time- it's just not worth it.

The other tough thing - I'm sure you know - in this market you'll be competing against cash offers in that price point. Sorry I don't have an answer for you. Good luck!

Hi @DB Brooks! Good luck with your historic home purchase.

@Roy N. 's post is a pretty thorough overview of what to look for - nice work! I just have a few thoughts to add.

In general the "4 points" are likely the most important things to check - Roof, Hvac, Plumbing, and Electrical. On an old house it's pretty safe to assume - if it hasn't been updated, it needs to be updated. I'm afraid knowing what to look for is a skill learned with time and experience, and not really something talking with strangers on the internet can fully prepare you for- there's just too much!

I will say Duval county's online records are fairly thorough and accessible, which is awesome. You can look up the address of the house on the building inspection web page, and look at the history of what permitted work has been done (or not done.) (buildinginspections.coj.net)

Other than that it's definitely a good idea to get a very good home inspection! An inspector should be able to point out any visible deficiencies, and potentially costly problems. Message me if you'd like some local recommendations of inspectors familiar with historic construction.

Also I like @Jennifer Umbaugh 's idea with the black garage door.

Ehh.. I'd go with a cool navy blue, or a forest green. 

I generally like red front doors, but not so much with the house's warm orange-y brick color.

Wow I can't believe you got so much work done for $35k!! Tell us your secrets! 

Oh and the house looks pretty good, too. 

Wow you really upped the curb appeal!! What a cute house! 

Glad you made some money, great job!

This house is awesome! I love the potential!

Don't worry too much about the naysayers - truth is, anything can be fixed, it just has a price!!

The first thing you need to do is get your finances in order. You will need cash or a renovation loan to purchase this house. What is your financial situation, and how are you getting the funds?