All Forum Posts by: Thomas DiGregorio
Thomas DiGregorio has started 2 posts and replied 6 times.
Post: Funding for a renovation on a primary residence
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Originally posted by @Aaron K.:
@Thomas DiGregorio why would you bring an existing building down to the studs? You already have an asset that is worth presumably $300k plus why tear it down and spend $250k to make it only worth around $600k. Is it possible to add a secondary unit/ free standing home in front of or behind the current one?
When I say down to the studs I mean a full reno, not tearing it down. It is worth $390k now, spending $250k to renovate will bring the value to $650-$700k. Unfortunately t's not possible to add a secondary / free standing home.
Post: Funding for a renovation on a primary residence
- Posts 6
- Votes 0
Originally posted by @Tom S.:
@Thomas DiGregorio Provided the numbers are correct, zoning is allowed, etc, the best way is to get your score to 720. Provided your credit cards aren't maxed and you've made payments on time for the last 12-24 months, you should be in that range pretty easily.
Can you pay off a credit card balance at all (if you have balances)?
Hi Tom, Thanks for the response. Currently I'm at 5% credit card usage. My only debt is my mortgage and car loan. I do I have one missed payment on my credit history from about 6 months ago. My credit score was 750 prior to applying for mortgages back in May. Since those inquiries it hasn't rebounded and actually dipped again when my mortgage hit my credit report.
Post: Funding for a renovation on a primary residence
- Posts 6
- Votes 0
Originally posted by @Aaron K.:
Flag on the play.
$250k to convert it, you can build a brand new house for that so the question becomes why? Next question is zoning is the property even zoned for multifamily? I am also skeptical of the ARV but there seem to be more pressing questions.
Hi Aaron. I am just north of Boston and building a 2600 sqft. multifamily costs $400-$500k. The scope of my project is bringing it down to the studs with all new electrical, plumbing, and HVAC. The current property is zoned for a two-family. Looking at comps in my area, two-family homes are currently going for $600K+ depending on the properties condition.
Post: Funding for a renovation on a primary residence
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I'm hoping someone can shed some light on options to fund a renovation on a primary residence. To be a short as possible, I recently bought a home that I plan on living in and converting to a two family. It is currently a SFH with an in-law apartment. I owe $312k on the home and the current appraisal is 390k. The renovation cost is estimated at $250k and the ARV is $650k. The obvious thing I can do here is use a construction loan from the bank but I unfortunately need a 720 credit score to do so (currently I am at 680). I've talked to a few hard money lenders and have learned that hard money lenders do not do owner-occupied loans. Just trying to see if there are any other options out there, would greatly appreciate it.
Matt, did you ever find an answer to this question?
Post: Using gift equity for down payment
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- Votes 0
I'm in the process of purchasing a home and looking for some advice or others opinions. I am purchasing a home from a family member for about 150k below market value. My two options are to receive a gift of equity for a down payment of 20% or pay 5% out of pocket. My plan is to rehab this home (cost will be around 100k) and live in for a couple years before buying a second property and renting this out. Any insight or advice is appreciated.