All Forum Posts by: Steven Haskins

Thanks Tyler. I am just waiting on my quotes to come in. I will try a HELOC.

Hello Zac & Dino,

Thank you both for the feedback. I met with three contractors this week and should have some estimates after the holiday. I will speak to my lender about the FHA 203k loan and a neighborhood bank about the HELOC.

Hello, i own two rental properties. One property I will have the renovation done this week and I have lots of equity in it. My second property is a 2-family and I live on the premises. The property needs about $60k for full renovation. My credit score is in the low 660's. I do not want to sell either property. How do I get the necessary funds to complete the 2nd property repair and upgrade work? My goal is to have both rental properties rented and then I buy myself a house. What would be your advice in this scenario. BTW the loan that I have on the 2nd property is a VA Loan, primary residence. I want to be able to use my VA Loan again in order to buy a house. My main concern is if I try to borrow funds and refinance out of my VA Loan then adding the $60k to my new mortgage may not net me enough income to want to keep the property as a rental. Any assistance with this scenario would be great. I really need to get the repairs done and buy a house. A mortgage person told me that I may run into issues in buying a house if I have multiple rentals. He is telling me to sell my condo and use the money to renovate my 2-family and then he will refinance me out of the VA Loan. I want to keep both properties. Other than me doing the work and saving money is there any other solution to this issue.

I own a condo which I have a mortgage and a 2-family rental property which I have a mortgage. I live in the condo and do not want to sell. The 2-family property needs a serious rehab and not rented. It is in a desirable area. I owe 55k on the 2-family and $65k on the condo. If I attempt my first gut rehab I could rent the 2-family out at $1000 per unit. If I do a rehab and convert to a single family I could sell for around $280k-$320k. It would be nice to keep the rental and get the monthly income. I have a few questions. Since I have 2 properties and two loans I am financially extended and I cannot get a loan for a complete rehab at around $120k. I would like to buy a house and keep both my present properties as rentals. I need advice on how to accomplish this task. I spoke to a realtor today and she said the comps are that the rental property as is sells for around $70k-$85k. This is not enough money for me since I would also like to pay off my condo to maximize my rental income. What is the best option for me to try and rehab the 2-family to keep it. Or get cash for a gut rehab to sell the building as a single family? Is there a partial rehab in which I could gut both units in the 2-family and have the electrical contractor do one or two rooms at a time since I will have to pay out of pocket? Maybe do my own drywall and solely work on just the 2nd floor unit? I am just trying to evaluate options to keep the low monthly payments and at the same time update the building to keep it. The plumbing and roof is good the electrical has knob and tube wiring this is why I was told to gut the whole building. I need to determine the best feasible way to reach my goal for my situation. I am in a tough situation and not for sure how to handle. I am leaning toward gutting the whole building and letting the electrical contractor on work on the 2nd floor unit. He said the whole building electrical is around 15k, which I do not have. So at $7500 he could wire the 2nd floor only providing that there are no additional costs. Maybe I could have him do a room or two at a time until the 2nd floor electrical is complete. The city inspector said I could do my own drywall as long as he can review it. I am just extremely nervous on other costs that i could run into. Please provide advise into this situation. Thanks.

Hello Reggie,

My credit has taken a hit every since I bought my two family. I hope you can help. The condo in Lafayette Square is 2-bedroom 2nd floor unit. I owe about $70k on it. The primary needs for renting are 2-rooms need carpeting. The bathroom just needs flooring, ceramic tile, and sink base with cabinets. The living room and hallway needs flooring. The kitchen needs flooring and cabinets. The kitchen has all new appliances ready to be installed. The bathroom has a jacuzzi tub and backer-board ready for ceramic tile. About 4 interior doors need to be replaced. I would say this is about 10k-15k worth of work. I have new lighting and fairly new ac and furnace. I rebuilt my deck about 3 years ago.

The two family in which I owe around $55k. The rents would be pretty high once I get the building up and running. It is located in the Benton Park Historic district near arsenal and highway 55 close to AB Brewery. On the 1st floor I ripped out most of the plaster in the main rooms and bathroom. I need approximately 50 sheets of drywall hung and taped, about 10 wooden doors, kitchen cabinets, bathroom needs refinished with cabinets. The bathroom has a good claw-foot tub that just needs refinishing. I need two lower front windows for historic district. The total unit needs flooring whether it be carpet or hardwood. All electrical and plumbing pass city inspection. Estimated cost to have unit ready for renting is approximately $20k-$25k. Just a side note I have already purchased the drywall and backer-board.

The upper level is the unit I have mainly been working on. I have rebuilt closets on the upper and lower levels. The 2nd floor unit instead of removing the plaster I hung 1/4" backer-board over the plaster in the hallways and main unit. It looks pretty good. I need flooring, 3 upper level front windows for historic district, kitchen cabinets and bathroom tiling for floor and walls. The unit also needs about 10 pre-hung wooden doors. I am presently refinishing the exterior front doors. I hope to have all door adjustments complete next week if weather is good.

Please note my estimates are conservative. It could be higher or lower depending on the contractor. If loaned the money I would be willing to let you select a contractor to inspect the unit and give the proper estimate, but I am confident that the amount that I am asking for will be enough to demand maximum rent and have two very good city properties. Also, the roof of both buildings are less than 5 years old. All issues are carpentry work that is needed inside the buildings. I do not believe I have the energy to go to school, go to work, and hang 50 sheets of 5/8" drywall. The two family units also need furnace and AC units. I think I have covered everything. Let me know if there is anything else.

Hello,
I own two properties: one in the Benton Park area and the other in the Lafayette Square area. I am in a situation in which combined both of my properties need about $40k-$50k worth of work, maybe less depending on the contractor selected. The range is from historic windows to mild carpentry work. I am in need of financial assistance in order to get these buildings rented. I am not interested in selling the buildings. I just need a generous low interest loan so that I can start renting my units and get out of debt. I have been working on the units off and on for a couple of years and it has finally takes a financial toll on me. Thank You very much.

Side Note: One building is a 2-family near the Lemp avenue and AB brewery (2-bdrm lower / 3-bdrm upper). The other property is a condo next to Lafayette Park, very desirable area. I can give more details if someone is interested. Your assistance would be greatly appreciated.

Thank You all for your assistance. Very good information.

Hello, I want to wholesale through REO or through a realtor mls but what I noticed is they want me to have proof of funds in which I don't have money. What do I do in this situation? I am completely lost on what I would say to a bank or realtor when I inquire about a potential deal.

Hello All,

I need immediate help.

I was wondering if I can get some advise on how to proceed with this situation?
A lady called me today. She owns a 2-family building in South St.Louis. She is in the process of doing a Chapter 13 Bankruptcy. She will not be able to make her bankruptcy payments and keep the building. She owes about $37,000 on the building. Here rents are $600.00 per month on 1st floor and $625.00 per month on 2nd floor. She has not put it up for sale as of yet. I do not believe she is going to because she needs a quick sale before she files bankruptcy. She wants to get out of the property as quick as possible. I want the building but I am not in position to get conventional financing. I am suppose to meet with this person on Friday and she seems pretty desperate. If my memory serves me if she files for Chapter 13 and try to sell the building the trustee will not let her keep the money, if she gets any money at all. My question to you is what is the best option for a person in my situation to get this building with no-cash? I will meet with her on Friday and I'm a bit nervous. This is the closest opportunity in months that I have had to get another property and I do not know how to attack this situation. I am sure she is looking for some cash before she officially files bankruptcy. She has no idea what the property is worth. I think she just wants to get out.

Your help would be great! If you are not able to help please refer me to someone that can guide me a little bit. This is a great opportunity for me and I really need the help.

Hello, Brian, Phil, and Steve I thank you all for your comments. Here is what I told my realtor to initially tell the seller. It sort of got my foot in the door:

Let them know that I am open to multiple options with no-down payment.

1. Lease option in which one to two years I purchase the property.
2. Contract for deed or land contract in which I take over complete responsibility of the building including taxes and repairs and in one to two years I buy the property straight out.
3. Rap-around mortgage in which he deeds the property to me and takes back a note, owner finance. I will have full responsibility of the property including taxes, insurance, and maintenance. He will still have the option to take the property back only if I am not making the payments.
4. I am open to any other terms from the seller with no-money down. I want the property, it is in my neighborhood and it would allow me to keep growing my business.
   
   Let them know that I am just starting my business and building a portfolio with no-money down. The funds that I keep on hand is mainly for repair or emergencies. I would never put more than a few thousand on the table. If he is in position to rid himself of the property at his asking the negotiated price then I am the person to work with. He is in no way losing money.

My business is SLH Properties LLC, he may have seen my bandit signs here in South St.louis and North County. Soliciting owners such as him. Let him know that it can be a win-win situation.