All Forum Posts by: Yoni R.

@Jarrod Rocha What is the risk in your eyes or from your experience?

Jarrod Rocha I'm trying to build a rental portfolio but I am open to flipping as well. The house I'm trying to buy is 125k the rehab is 50k and let's say 10k for closing etc... So 185k all in. Houses of this type in the area are around 210k-230k. If I buy it I am going to set it up as a single family with an option to make it a duplex really easily. That way if I do decide to sell it one day it can be reverted back to a single family easily and cost efficiently. As a duplex I will be netting a 15% return and as a single family probably around a 6% return. I will only buy a house if it is a 1 percenter, so as a duplex its good for me but as a single it's not. What's your thoughts?

Joshua Fulenwider can you give me the details in the different type of loans I can go after? I am looking to cash out so I can leverage the money onto new property investments. What do you recommend? I am not looking to hide the fact that it is a duplex from the lender at all. I just didn't understand if the city will be involved in approving the loan for the lender. I of course don't want the city making problems. Now that I understand the process and understand that the city has nothing to do with it and that a lot of the lenders are just looking for value and not permit obedience then this deal is indeed starting to look good for me. If you have any average or realistic interest rates on what to expect with lenders for a refinance that would be great info too. Thanks!

Stephanie Potter I'm looking to buy and hold the property. The only real change is closing a wall in the middle of the house to make it a duplex and adding an additional standard kitchen. Whenever and if ever I decide to sell the house I'll just take down the wall and the kitchen. That's easy. The structure of the house will not change in any way besides that. Will the lender care? As long as there's value in the loan so what do they care?

Joshua Fulenwider I actually don't want to pull or file for new permits because the duplex will not be authorized by the city. I just want the lender to refinance/mortgage the property for me. The question is if I have to have the house set up according to the city permits or are they just looking for value? if I make it a duplex and then ask for the refinance from the lender will I get it?

Stephanie Potter There is no permit from the city for a deplux. I want to make it a deplux regardless of the fact. The question is if the lender will give the loan even if the house is zoned for a single family but in reality is a duplex. If the lender is looking for value then there is definitely value being demonstrated. It just doesn't have a permit for being a duplex. Does the lender care?

Stephanie Potter thanks so much for the answers. Great info. So if the inspection is done by the lender then what do they care if it matches the permits exactly? Should I maybe refinance right off the bat and then after that turn it into a duplex? Even if it means that the house will be vacant for a few months at least that way I won't be stuck with the rents of a single family for a year.

I need to some helping understanding the refinance game once and for all. These are the details of the property I want to buy: -Asking price $130,000 -Zoned single family (but was used as a duplex in the past) -An additional $60k is needed to rehab the house. I want to buy the house in cash and rehab it and then refinance it to get whatever I can out of it to be used on the next deal. My game plan is to rehab it as a single family (so that it will pass the inspection) but to have it setup so that it can easily be made into a duplex when ready (put up a wall and add an additional kitchen back to back with the current kitchen). I want to rent out the house as a single family for the first year and in that time refinance it and get my money out. Once the year is up I will turn it into a duplex and rent out the units. Each unit for $1,300. So cash on cash: Yearly rent $31,200/cost $190,000 = %16.4 return. The questions are as follows: 1. What does a refinance entail? 2. How long does the process take? 3. Will they do an inspection to check that it matches the permitted plans? 4. Who inspects the house? The lender/bank or the city? 5. If they do inspect then why? For what reason? 6. Is it a one time scheduled inspection or do they send multiple inspectors for different things? 7. Is the refinance for the appraised value of the rehabbed house or only for the cash I put in or bough it for? 8. What is the average refinance rate? %70, %75, %80? And what do they base it on? Anything else I need to know about refinancing and inspections before going forward with this deal? How does my game plan sound? Thanks for all the help!

@William Cabab Usually 70k-150k and I buy in cash. If you have any ideas that you think that will help please let me know. 

@Shiloh Lundahl@Charles Kao Thanks for that I needed it. I guess I just have to up the number of properties I see a week and make offers on.