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Updated almost 3 years ago,
Newbie looking for advice. Oklahoma.
Like nearly every newbie here, I’m interested in getting into real estate and therefore plan for my next house to be useful toward that goal. I’m learning as fast as I can, but there is no substitute for experience of which I have practically zero. I have a lead on a house in Edmond, OK that needs some work done. Roof, electrical and foundation of the addition. I roughly estimated $20k, $8k, $5.5k respectively. I believe there are opportunities for modernization and floor plan changes($10k). I threw some numbers at this but I’m not sure how realistic this is. Seems promising to me, but I recognize in my eagerness that I may be ignoring some items, like maybe expecting $1800/m rent is too high. I’d look at staying for a year or two and then purchase something else, turning this into a rental. I’ve attached my calculations.
Items that need to be addressed or questions I have at this point:
- Will I be able to get a conventional loan with a house in this condition? I know that typically there’s an appraisal when banks are involved and I’m not sure what they would make of it.
- I have about $26k but based on these fixes/upgrades I need around $49k, based on rough estimates. Do you have suggestions on how to handle this? I imagine I could refinance after the lender allows to pay back any short term loans.
- Are there special considerations with a private sale worth keeping a special eye out for?
I’d love any advice you’d give.