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Updated over 4 years ago on . Most recent reply

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3
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7
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First rehab in Covington, how much can I do myself?

Account Closed
Posted

Little intro about me since I'm new here. New to real estate investing, own one rental (with a 30 year traditional mortgage) in nky that was turnkey, been renting it out since March 1st, low on the cash flow side but its not nothing and I rented to somebody I knew, maybe not the best decision objectively but they are taking good care of the place so far.

I'm looking at purchasing a house that needs an extensive rehab, I'm talking to a lender about a rehab loan to use for contractors before doing the cash out refi. My question is how much of it needs to be done by contractors? I've done installs/replacements on a couple types of flooring, drywall, cabinetry, outlets, ceiling fans, toilets, showers, vanities, and faucets etc. I'm pretty handy and tend to pick things up quickly, I just don't know when it comes to the roof, electrical, plumbing, and hvac how much I would be allowed to do myself and what I need a licensed person to do or just sign off on, anybody have experience in this sort of thing? Thanks

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58
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65
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Brian R.
  • Burlington, KY
65
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58
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Brian R.
  • Burlington, KY
Replied

Contact Heritage bank. I've used them for my 2 BRRRR's and they have a great program. 1yr interest only. You put 20% to 25% down on the purchase price and then they finance the rehab 100%, similar to a construction loan. You draw money out as work is completed for rehab portion. Estimate a little high on the rehab budget and as long as the total is 80% of ARV you're good. Mine went over budget on both but we added work that we did not plan on doing and used our own cash to cover it. I'm currently on furlough but as soon as I go back to work I'm looking for my next project.

Good Luck

Brian

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