All Forum Posts by: Tim Johnson

@Jay Hinrichs

You did a real good job at making it fit it with the others in the neighborhood. First look you can’t even tell it’s a new build looking at the pictures at quick glance. Even small details like door handles look period correct.  It’s nice to see the old world character with the walls panels and so on. Most builders on spec skip the details and just slap some crap against the way and hope it sticks.

Hats off to your contractor and designer they really pulled that off.

nice work

@Jay Hinrichs  Sounds like a fun project.

300k is going to get you lipstick on 8100sqft house just enough to get a high end buyer to low ball you 20% off ask.

I would try and get a look on the inside and see what the conditions are like but overall it sounds like a money pit.

I have completed a couple of these high end ones.  They are normally trashed on the inside and outdated.   A high end home wants high end finish.  If this was built in 2004 its dated for today high end buyer.  I would run your numbers with rehab at about 300k and then see if you are still drooling.  You talking 8100sqft this is going to take time and lots of money to complete.  6-9 months rehab timeframe.  They won't settle for cheap finishes at this price point.

If you where going to spend 1.6 mil would you want 15 year old finishes, maybe, but you would also want a discount.  

After you factor in holding costs for 9 months to 1 year, then you numbers might hit the 20% rule.  This could work for a wholesale deal, but you need to shop for some of the big players in your market and plan on holding it for a few months.

How do you Airbnb a house you don't own?  I would love to see how this works?  Are you going to Airbnb out your primary residence I'm thinking?

Texas is very strict.  Going to have to commercial.  Rates are higher, but you still might cashflow.  Just need to run the math.  Use 6.5-7% for rate and see if you still cash flow.

I thinking thats water damage, do you have a moisture meter, they sell them on amazon for like $75.  Hate to see you just paint this and have a mold pit behind the walls.  Test it with a meter to be safe.

Its must be coming from some flashing damage or something.  Usually when its yellow the water is following make yellow streaks, this is holding water like a towel.  Might be in the insulation.

You could go conforming loan with 3% down if your credit scores are high enough, income and employment history work out.

Getting two loans is not an option because both lenders want to be in 1st position on the loan.

Is there a chimney by this?  That could be water damage coming down the chimney

Depending on site work- tap fees, all that stuff you can range from 100sf to 300sf, it's way to big of a range to just throw some numbers at paper, you need to actually get prices on stuff.

Lots of non qm lenders out in the market.  @Chris Mason said.  Expect higher rates and slow turn times. 

They work great on refi when it doesn't matter if it takes 60-90 days to close, but they are a nightmare on purchases.

Expect rate to be 2-3 points higher and about 1-2 points in junk fees.  So your looking around 6% to 7% to 8% depending on what you want to do.