All Forum Posts by: Christos Philippou
Christos Philippou has started 13 posts and replied 115 times.
Post: Insurance on Bare Bones House - Previous Vandalism
- Wilmington, DE
- Posts 116
- Votes 59
Originally posted by @Jason Bott:
@Christos Philippou We would need to clarify the work "Things".
The items attached to the property, or will become attached to the property, such as cabinets, electrical, furnace, etc are the types of things meant to be covered by this type of policy. Items such as the contractors personal equipment, your equipment, may not be covered depending on how the Builders Risk is written up.
Got it. You understood my ambiguity perfectly haha. Love this forum, thanks for all the help!
Post: Insurance on Bare Bones House - Previous Vandalism
- Wilmington, DE
- Posts 116
- Votes 59
Originally posted by @Jason Bott:
Christos Philippou you need what's called a "builders risk" policy. A vacant building policy will not properly cover the improvements to the policy. Also, it is common for most vacant policy to have limited theft coverage.
thank you very much Sir... so the Builders Risk Policy should cover me in the event that somebody breaks in and steals things from the property while my contractor is working on it?
Post: Insurance on Bare Bones House - Previous Vandalism
- Wilmington, DE
- Posts 116
- Votes 59
Hey all!
I am closing on my second property next week and insanely excited! The building itself is bare bones, just has the foundation, studs, etc.. minimal flooring, no walls or anything, so we get to build it ground up. It will be fun being able to construct it how we want.
The only thing is, it's in a crappy part of town. Recently, the electrical wiring and some other things have been lifted out. The property has clearly been broken into several times. I know there is specific insurance I should be looking into while we are building it, but can somebody give me some more info on that? I would HATE to redo all the electrical work, and somebody comes back overnight to strip it all out.
Is it recommended to get an alarm system? Or just stick with a good insurance policy
Post: HELOC/Purchase guidance needed.. under construction
- Wilmington, DE
- Posts 116
- Votes 59
@Cory LaChance thanks man! I'll let you know how it goes... Guess I will be calling a bunch of places in the morning to ask about cash out refis and secured lines of credit.
Post: Wilmington Delaware Rental Help
- Wilmington, DE
- Posts 116
- Votes 59
Just an FYI because I went in to the City today... If you have a real estate rental property, you will need to have a business license/register EACH rental unit. The cost for that is $125 for 3+ units each year, PLUS $10 per unit. So if you have 5 units total, you will be paying $175/year.
Post: HELOC/Purchase guidance needed.. under construction
- Wilmington, DE
- Posts 116
- Votes 59
Originally posted by @Cory LaChance:
I don't see why a secured LOC against your Free & Clear property won't serve your purpose. This is assuming you have enough equity in the F&C property. Also assuming that your new acquisition will be all in (Purchase cost + rehab cost + holding cost) at under 80% ARV because that is the limit the majority of lenders will loan.
Your plan sounds like it will require short term financing (Hard money, private money, secured LOC, ect..) to purchase and fix the property. The short term product will then be refinanced into a long term product (Portfolio loan, conventional mortgage, bank loan, ect..)
So I'll just have to do the leg work, call a bunch of local banks/credit unions and see who has something to offer me?
Post: HELOC/Purchase guidance needed.. under construction
- Wilmington, DE
- Posts 116
- Votes 59
edit: not sure if that is an option/possibility/something "people do" or I am being naive and overly-hungry haha thanks for putting me in my place if so
Post: HELOC/Purchase guidance needed.. under construction
- Wilmington, DE
- Posts 116
- Votes 59
@Cory LaChance and @Chris Martin thanks guys!
I guess just for the sake of retrieving guidance and help, I'll just be 100% frank with what I need and what would be ideal.
I would like to simply purchase the property (40-60k) in cash. My contractor then said, with an additional $50-70k he can finish the entire project start to finish in 3 months tops, at which point we would have tenants lined up ready to move in.
I'd like to just get a loan (somehow...this is what I am trying to figure out haha) for $100k flat or whatever it may be to buy the home in cash, pay for the repairs in cash, then use the rental income to pay off the loan as quick as possible.
Post: My CAP Rate is WHAT?
- Wilmington, DE
- Posts 116
- Votes 59
Originally posted by @Pat Giblin:
I understand cap rates to be used for commercial property evaluation only. 1-4 units is still considered SFH by all legal definitions and tax implications. 5+ units makes it commercial which triggers a market that uses cap rate for assessment. Without that 5th unit the market will look at it in terms of recent comps in the area rather than income based value. If you're looking to sell you'll likely have to conform to how the market sees the property or you'll have a hard time moving it. On another note, if you were to bundle this property with other rentals that you own and wanted to sell your "portfolio" you could probably assess it using a cap rate.
Good to know thanks. We do have 1 smaller space left in the building we could build a fifth 1-bedroom if needed. Thanks for the feedback.
Post: My CAP Rate is WHAT?
- Wilmington, DE
- Posts 116
- Votes 59
Originally posted by @Michael Noto:
Purchased a "4 banger"
Is that a thing now? I can get behind it if it is.
Definitely just made it up hahaha