All Forum Posts by: Russell Sutton

Hello Jay,

Thanks for your response. To be honest, the house is 12k sq ft. It has an in ground pool as well as a gymnasium. These both could be positives and negatives. The other information I omitted is that in addition to the 12k sq. ft. house is a 8k sq ft. "Barn" that could also be converted into multiple apartments. In total, the 20k sq ft space averages out to way under the areas market value. Obviously, the transformation would have to be well planned. the most frustrating area is the financing. Any advice in that area would be greatly appreciated. Any work I have completed thus far has been self funded. This wouldn't be my first; however, it would be my largest. 

Thanks,

RS

Thanks for all of the information. So to answer many of the questions that have risen from my post; This isn't my first endeavor. I have also been involved in construction for about 18 years. The property is a very complicated and yet it still holds much up side. The reason I feel that it will make a great rental property as opposed to a single family is of course it's location.  The rental business in the area is doing quite well and the sales of single family homes remain stagnant. This property holds emense sq. footage. The main structure is over 10k sq. footage alone. with more than 5 bathrooms, I feel that plumbing should be reasonable. The home has or will have a gas boiler for controlled heat. All appliances would be electric as the cost for this is quite reasonable.

The layout would have to be the most difficult area of the project. Converting a single family into a multi will be a challenge. However, this is a very doable project. The city has stated that it can be converted to a multi family residence. 

I would love to go into this partnering with a knowledgable real estate guru; however, that's where my knowledge falls short. I have done a few projects on my own and this one would be a challenge, yet I believe the reward by far out weighs the risk. A very modest appraisal would be 500k but could exceed 650k if completed the correct way. 

I hope I addressed everyone's questions or concerns. I am still looking into financing this project and after some sound advice on BP, I will actively seek out potential partners.  

Thanks,

RS

Hello all,

This is my very first post on here. I recently found a property that has been vacant for many many years. It was up for sale multiple times throughout that period of time. It Is in need of major renovation. The property is currently being offered for 160k with cash offers given a discount. The property is currently a single family with 8br and 5br. I'm looking for advice because this will be my first property that I intend to transform from a sfr to a multi family. Given the square footage (10k+) I can safely say that my intended 4 units is extremely modest. Also, the rehab and hold will have to be completed in stages seeing as though the seller is combining 2 parcels and will not separate. The other parcel has enough square footage to also be 4 units, which I would like to complete once the first is finished or vasa versa. In total I can see 8-12 units on the property. The only way this will come to fruition is with a hard money lender. Given the arv being north of 500k, any advice on how of if I should proceed. I would like to complete this in stages as I have mentioned; however, all of the HML I have been in contact with either won't do more that a 4 unit property or the property must be completed and flipped in under 12 months and refinanced through anouther lender. This is a huge opportunity that I wouldn't like to miss out on.