All Forum Posts by: Simone Douglas

Simone Douglas has started 1 posts and replied 5 times.

Thank you so much for the insights! So timeline wise, that would mean if I were to refi out of fha to conventional let’s say today, I would have to wait another 6 months with the conventional loan to pull the equity out?

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Wrapping up my 203k loan renovation and have a couple of questions regarding the refinance process and/or any advice!

In month 7 of my 203k loan reno on a duplex. Hoping to refinance out of the FHA loan and tap into the equity to acquire another project. Wanted to get some advice on which kind of loan to refi into (I.e. conventional, FHA streamline, etc) to get rid of the PMI if possible. Also what is the process like to tap into that equity? I've read that you can't do a cash out refi with FHA 203k but you can do a HELOC.

What did others do when the renovations were completed?

Thanks so much in advance!

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@Matthew Porcaro

Wowwww. I’m just a little nervous because the banks have literally delayed my closing by almost a month (paperwork, appraisers, & rehab dept) on top of the already excessively long process it’s been already (60+days) and the property is right near Ohio State Univ. Hoping I can have it rehabbed in time for the school year for students to rent out! Trying to plan ahead as much as possible but I’m learning that a lot of it it’s out of my control 🥲

But thank you for your insights! Glad to hear your plumber is okay though lol

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Hi Matthew!

I am currently in the 203k loan process and my numbers are actually almost exactly the same (PP, rehab cost, and ARV). I am curious as to what took 8 months for the rehab process if you don’t mind me asking?

thanks in advance!

Originally posted by @Matthew Porcaro:

Hey Adam -

This is exactly what I did on my first deal.

I purchased a really distressed duplex with a 203k loan. Picked it up for $270k, and the renovation was $80k. All in for $350k.

I ran my numbers and had an idea that it would be worth in the neighborhood of $450k when I was done with it, and also that since it was a two family, one of the units covered just about all of my mortgage payment for that first year of occupancy.

Renovation was hefty, and took 8 months roughly but once it was done I refinanced out into conventional, getting rid of the ~$225 PMI from the FHA loan, and a few months later moved in with my now wife, and I now rent out both units for cash flow.

A few months later I took out a HELOC on the remaining equity (it actually re-appraised a year later for $500K) and used that money to finance two flix and flip deals I did a year later.

Essentially, I did the househack + BRRRR method in one shot with the 203k. The difference is I just did a fix and flip, not a hold on my next deal, but that's up to you!

The best advice I can give you is that your team is the most important part of a successful 203k.

Many will try to steer you away from it, simply because they don't understand it.

But the reality is there are plenty of 203k experienced lenders, contractors, realtors, and consultants out there that will be able to help you.

The most important one in the bunch is your lender. Make sure to find a loan officer that specializes in these, and they'll help drive the ship for you with vetting out some of the other members.

A good way to find 203k brokerages in your market is by looking up the "203k endorsement summary".

It's a list on the HUD website that is updated each month with who is doing the 203k's in every major metro area of the country.

Just search through the list and find the market closest to you, look at which brokerages have done the most in that market, and call them up and ask which loan officers do the most renovation loans at their branch.

It's real estate's best kept secret because it takes some legwork, but I'm telling you it's worth it.

Good luck!
MP

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Hey @Tyana Blackledge! I’m currently in the process of closing on a 203K loan standard for a duplex and it has not been fun. I’m a very newbie investor but I saw the value in wrapping the purchase and rehab into a loan mainly because it would have taken forever to save the amount of the cost of rehab. I’ve been in contract for 78 days (and counting, was due to close this afternoon but the bank delayed the closing, definitely hurt)

a few things I’ve learned already and would do differently:

•definitely only move forward in this process with an already licensed contractor who is organized with paperwork and such

•if possible, get in touch with multiple lenders that are currently doing 203k loans

•find a lender that has an experienced 203k loan team and ask about appraisal and underwriting timelines (has caused huge delays for me)

•patience is an understatement (still struggling with this myself haha)

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All Forum Posts by: Simone Douglas

Simone Douglas has started 1 posts and replied 5 times.

Post: 203K Loan Refi/ HELOC

Post: 203K Loan Refi/ HELOC

Post: Combining 203k loan, house hacking, and brrrr

Post: Combining 203k loan, house hacking, and brrrr

Post: Fha 203k loan for multi-unit