All Forum Posts by: Alex Padilla

oh wow, that makes sense actually. I don't know if my bank will be that flexible (they're a big one), but I'll check and if not consider a different bank to start this discussion with.

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I have a mixed use property with 2 units (main home and ADU) where the town has approved an additional 3 units because it's mixed use zoning. I'm estimating the cost will be about 350k since it will be a conversion and there won't be a need to construct anything from the ground up. Here's my dilemma.

I have the cash to make the conversion, but ideally I'd like to finance ~80% of the cost. The problem is I got the property at 3.5% @ 800k & any kind of financing will require me to refinance so the home can go as collateral if anything goes sideways. Makes sense, no problem, but I'm not doing that given interest is at 7% now. So my question is, does anyone know of any hard money lender or other unconventional way to get this money for the units based on purely on future cash flow? 

So is the correct term for this "renovation"? That sounds to me like renovating an existing property/units, not the addition of new units. I realize it might fall under that umbrella, but I'd like to confirm so I know what to look for here. I realize it's probably not a construction loan, since technically there's no new construction.

I had an idea, but I never expressed it to the lender as I saw as more of a long term event that would happen sometime in the mid-long term future. We wanted it mainly as a primary residence and the opportunity to add additional units in the future made it into a sound investment at the same time. But being here now, I see it's not so far fetched & we could make it work.

Hmmm, so it looks like might have to be an all-cash investment if I don't want to finance? That brings other considerations to the table mostly opportunity cost.

I'm having a hard time finding options for financing a construction project in an existing home. This is a M1/Mixed use property currently used as a single family home. My town has allowed me to add 3 more units to the building. There will be no new construction needed everything will just convert the whole downstairs and separate it into 3 units. It's a pretty big home.

What kind of loan can I get in this case? I just bought the house in April at a 3.5% interest rate with only 5% down, so HELOC is not an option & anything requiring re-financing is tough because it would raise rates dramatically (4-7%). The house was appraised at 800k, and I'm thinking this would bring it up to 1.4-1.6 million. (But who know with rising interest rates though). I'm guesstimating the construction costs will be 250-450k.

Hi everyone, I'm a new investor from CO/NJ/NY (residing in CO for a bit), and just joined the forums after a few months of listening to BP, and reading some of their RE investing books. I grew up with parents that invested in a few rehabs back in the day, and looking to get into this same thing myself.

I'm a software engineer so I'm more on the analytical side, but my hope is to get some traction in the rehab side of things and scale up from there. There's tons of nuances of course! but that's the 1000 foot view :-) 

I'm happy to be here and look forward to meeting everyone.

Some of the markets I'm currently interested in:

Grand Junction & surrounding

Denver & the front range

Living this myself :) My wife and me moved back to CO from nj/nyc with family during this pandemic because of wfh policies. We are now looking to invest here.

It seems to me most markets in cities or close to them are the just as "hot". We saw the same spike in demand in jersey this whole year.

As an aside...although a lot of places are more open to WFH, it'll be interesting to see what happens when some companies start calling people back to the office? Will you see an outflux? Maybe some will find a job in the state they moved to? And more importantly how will we see this impact RE markets?

I'm also looking for meetups in the GJ area. Just recently moved back to CO for a while (due to wfh), and I'm looking to get to know more investors here. 

@Scott Emsley New to investing, but I'm gonna DM you if you ever wanna chat.

@Teri Feeney Styers could you add me to that list as well?