All Forum Posts by: Shawn Rasmussen

@Mark S.

A friend of mine did this and it turned out nice. He borrowed a Bobcat and rented a roller.

@Ryan Enk

What's a green fee and why was it so much compared to the previous estimate?

@Ronald Mejia

70-90%. A HELOC would allow you to borrow money as you need it and only pay interest on that amount.

It might be a 5-10 year draw period with a 10-15 year repayment period. During the draw period you can borrow money and can make interest-only payments. During the repayment period you can no longer borrow money and the payments are principle + interest. Interest rates might be fixed or variable depending on the lender. You can punch numbers into an online HELOC calculator to see how the numbers pan out. Have a lender show you the difference between a cash out refinance vs a HELOC.

Anyone had luck using online property searches to find deals? I've been looking at my local market to see who owns what and how many other properties they own. If the property is owned by an LLC, I've been using the state's online business search to find the owners.

@Mike Roy

Thanks Mike. That's what I thought. The buyer might be in for a rude awakening when they try to refinance through a bank in 5 years to pay off the seller financing.

They did make a down payment of 10% and did some renovations. Maybe in 5 years they will have 80% LVR, but it sure wasn't explained that way.

I can see the benifit in looking at both calculations, but not looking at the NOI to base numbers off of for bank financing.

To the best of my knowledge a 4-plex being refinanced by a bank is always appraised based on comps.

I watched a YouTube video and the person was calculating the future value of their 4-plex using NOI and cap rate. This was a non-owner occupied property and was initially seller financed for 5 years. Do commercial banks look at NOI for appraisal purposed on properties less than 5 units?

Has anyone built a new multi-family property with FHA and done some of the work yourself?

Is FHA more strict with DIY on new construction vs 203k renovations? I would either hire a GC or do it myself. Foundation, framing, siding, shingles and water/sewer/gas/electrical mains would all be hired out. Electrical, plumbing, HVAC, flooring, drywall, paint, and cabinets would all be DIY. Let's assume I can prove to FHA and the lender that I'm able to do these tasks. Would something like this be allowed on a new construction?

@Matt I.

It depends on your current mortgage situation. If you have a conventional mortgage, not FHA, you can rent your house out, buy the multi-family with a FHA loan and move into one of the units.

If your current mortgage is FHA, you would need a valid reason, see FHA website, to have two FHA loans at once, or you could refinance the current house with a conventional mortgage.

@Habbak Burs

Search "Property records" plus whatever city or sometimes the county the property is in. You should be able to pull up an interactive GIS map and see who owns the property.

@Brooklyn R.

Is this a The Office pun? You declared it.