Tips and tricks for First Property

[Jacorion Williams]

Hey Bp team!

I'm currently closing on my first property in 2 weeks using a FHA 203k loan to help with renovations.

This is going to bring my mortgage payments to around $2.3k per month. 

My goal with the property is to house hack and rent out two fully furnished rooms ($700/800 each room). 

Are there any tips or tricks I should know or keep in mind when approaching closing and for after? 

Thanks! 

[Matthew Porcaro]

Quote from @Jacorion Williams:

Hey Bp team!

I'm currently closing on my first property in 2 weeks using a FHA 203k loan to help with renovations.

This is going to bring my mortgage payments to around $2.3k per month. 

My goal with the property is to house hack and rent out two fully furnished rooms ($700/800 each room). 

Are there any tips or tricks I should know or keep in mind when approaching closing and for after? 

Thanks! 

 Congrats on the closing!

When it comes to the 203k, just make sure you have a contractor start date scheduled, and be sure to contact your consultant (if you have one and its not a 203k limited) to get the first draw scheduled. 

Usually the first draw happens after demolition/rough installs for electrical and plumbing. 

Stay on top of the schedule. If you haven't yet. Sit down with your contractor and write up a quick timeline. 

Frame it like this: "in order to make sure you get paid on time I want to have a schedule of when the draw inspections should happen with the bank"

Then, you have a schedule to keep an eye on and if they're slipping, you can ask them why and see how you can help them get back on track. 

Also, if you have any materials you need (tile, flooring, cabinets, bathroom fixtures, etc) start picking those ASAP. Make sure they stay under what was budgeted by the contractor for the job.