All Forum Posts by: Mark Manship

Good Morning BP, My wife and I went under contract on a triplex property near downtown Pensacola this past week, and are looking at accomplishing some cosmetic renovations before we move into one of the units ourselves to "house hack." Originally, we were going to simply purchase the property using a conventional loan and a higher down payment under an "investment" construct, but because of some other factors, have now opted to use an FHA loan and owner-occupy. We are also looking at potentially using the 203k program to roll our renovation costs into the loan and possibly aid in getting the reno work done by professionals in order to alleviate having to live in a work site (which we've done before and now dread). The property will be free of tenants to allow us to do a full renovation of all the units before raising the rents to the appropriate values for the current/future market. With that in mind, we have our inspections and walk throughs scheduled for this week, which may reveal more costly repairs, but assuming the major categories check out (roof, foundation, structure, permitting/coding, plumbing, electrical), we're wondering if any of you have recommendations for contractors that could assist us in getting this property turned around on-the-quick. Numbers-wise, we're looking at putting in no more than 35k in to keep the project "streamlined." Without going into all the details, the scope of work includes: - Approximately 2850 sqft (2500 of which needs work) - New flooring throughout (combination of laminate/carpet in living/bedroom areas, floor tile in bathrooms and kitchens) - 3 "new" kitchens to include cabinets/counters (initial thoughts are entry level plywood/wood combo boxes and doors + entry level granite or other hard surface). - 3 "new" bathrooms to include vanities and shower wall tiling (again, budget-level materials) - Interior paint to include ceiling, walls, baseboards/trim and window casings Yes, I understand this is a LOT of work with a ton of variables that revolve around the choice of finishings, but I'm looking to gauge feasibility for labor costs associated with this type of "cosmetic+" job. We are definitely open to getting our hands dirty to help offset the labor costs, as we've done similar work in the past, but would like to have AT LEAST one of the units to call home so that we don't have to go to bed each night breathing in concrete/drywall dust and new paint, ha! Any information or recommendations would be greatly appreciated! We look forward to sharing our progress. - Mark

Thank you for the recommendations; with that, I'd still like to educate myself if there ARE restrictions that are imposed nationwide (i.e. Minimum loan amounts, minimum down payments, property type restrictions, etc). Not only that, but where the restrictions are cited/regulated. 

If I approach a community bank/CU or private lender, it might help understanding the premise behind those characteristics, so I have an idea of my left and right limits. Obviously, each lender will have their own risk limits and boundaries, but are there overarching guidelines?

For example, the FHA has an entire page dedicated to housing requirements prior to financing a 203k loan (no pools, PMI required, etc); I still have yet to find a source document that details these for other types of loans (conventional, second-home, investment, multi-family).

Thank you again!

Good afternoon BP! I am wondering if anyone has had any luck finding lenders in the NWF area (Pensacola, specifically) willing to finance loan amounts for home purchases under 100k; more specifically, buy-and-hold investments. I have found a few "opportunities" worth walkthroughs and offers, however, I was told by a local mortgage broker that most lenders won't offer financing below 135k (minimum loan amount); those investment property loans also come with a 20-25% down requirement.

I'm trying not to get frustrated having heard multiple stories of individuals purchasing homes via NFCU or other like-Credit Unions and FHA with low money down (3-10%) and seemingly no minimum loan amount. Are these myths? Owner-occupied or first-time home-buyer discounts that I don't qualify for?

After running the numbers, I would prefer to avoid the hard money lender route in an effort to minimize the higher interest rates with cash flows already hovering in the low hundreds.

My questions could be summarized as:

1) Are there known lenders, specifically in NWF Florida (Pensacola area) that offer "small" mortgages (<$100k at 70%-100% LTV)

2) Are there restrictions to conventional lending that are in line with what my mortgage broker told me that I may be missing? (i.e. minimum loan amounts of 135k with 20-25% down)

3) If so, has anyone had experience creating creative solutions within these requirements?  

Thanks!

Alex Castro , PM me! My wife and I have been looking for REA's to help us jump in -

@Alexander Castro do you know of any sites that offer listings within PR other than Zillow, Realtor.com, etc.; my wife and I are looking at acquiring a vacation rental property, either in Rincon, San Juan, or Vieques.

Lawrence Johnson , are you still operating/lending for properties in PR? If so, I'd like to talk about some financing options for property in San Juan and/or Vieques. Any information you could provide would be greatly appreciated!

Victor Chico , my wife is originally from Mayaguez, and after a recent anniversary/homecoming trip to the island, I too fell in love; do you know of any property managers hosting rentals along the north east coast (San Juan, Luquillo, Fajardo, or even Vieques)? We have seen a few properties in Viejo SJ and Vieques that we'd be interested in purchasing and then using as a vacation rental for the high season; however, we're hesitant to pull the trigger given that we'd be relying HEAVILY on property mgmt to maintain the residence between guests. Any information you could provide would be greatly appreciated!

@Lawrence Johnson please shoot a PM my way. My wife and I are looking at some properties in Old San Juan and Vieques, and would love to get some information on potential financing. Thank you!

Arianne L. Hoping I can make it this time around!

I'm based out of Florida panhandle area (Okaloosa Walton County) and wondering what schools might be available in the vicinity to attain my agent's license. I understand there are other items included in the application/testing process (fingerprinting, background check, etc), but wanted to find a reputable school (preferably online) from which I could complete the required class work. Any information/experiences would be greatly appreciated!