All Forum Posts by: Amber Douglas

@JD Martin Thank you so much for your response!  My area is pretty rural.. The median home value is approximately 94K.  I was able to get into the house and it will need some updates.  Mostly cosmetic, but you are correct... Not inhabitable per my comfort zone.  I think the carpets were installed in the 20's.  Lol.  

Thank you!  I sincerely appreciate the input.  I will begin calling local banks and credit unions tomorrow to inquire about their options.  

Hello There!  

I have found an 1100 Sq Ft home (2 bed 1 bath). The roof was replaced this year and the Central Heat and Air unit was replaced within the last 3 years.  The house is on a large lot and needs some updating... Most of which I can probably manage myself.  The house also has a small garage + an attached carport.  I think I could convert the small garage into liveable space.  This would add approx 200sq feet to the liveable area.  

I am currently listening to Investing in Real Estate with Little or No Money Down... But, I am not experienced enough to figure out how to manage something like this?  Approach local lenders for a what exactly?  How much do I finance?  Do I need to get an appraisal and an inspection?  Seems like an obvious yes... But, I am not positive.  The house is currently occupied... So it is liveable. 

Houses rent faster than you can post them in this area.. But!  I am not sure how to make the initial purchase...If I use a private loan?  Do I renovate and refinance into a conventional loan?  If so... For the full appraised value or just enough to pay back the small note+renovation costs?  

I am currently living in a rental as well.  Do I purchase the (40K) house and stay in my current rental while I renovate the other then just rent the other out?  Then refinance the home and use the equity as a down payment on a new property?  Renovate the new house.. Treat it like a first home loan... Live in it for a year.. Then rent it out?  🤔🤔

Any advice would be appreciated!!  

Brock, 

Thank you so much for the response!  I had a nice long conversation with myself.  Lol.  And!  Talked to several people and have decided this would not be a great idea for a first investment.  

I am re-routing my efforts to a smaller project.  

New investor here!  I chose Tulsa, OK as my location but I am actually located in a rural part of North Central Oklahoma.  Houses sell relatively quickly and rentals are rented before they hit the market.  

With that being said....I have the opportunity to purchase a residential home (in decent condition.. Needs a few repairs, but definitely inhabitable) with a small 6 unit in the back.  The 6 unit has not been occupied in several years and contains 6 small rooms (200sq ft.. Small living area.. Small bathroom).  It, needless to say, needs quite a bit of work.  I would be financing the residential property and the six unit would be deeded over upon closing.  The seller is asking $205,000...I have a deal accepted for $150,000.  Seller is paying $5,000 of closing costs and a $5000 credit towards a contractor for repairs found during inspection.

Here is the part that is bothering me... Property taxes and insurance.  Insurance quotes are coming in anywhere from 3500 to 4500 per Year and interest rates are sitting @%7.1.  This would put my conventional mortgage at 15-1600 a month with unknown costs for repairs to get the 6 unit functioning.  

There have also been rumors of a major plumbing issue in the 6 unit.  (Luxuries of a small town.. Everyone knows something).  I have a plumber coming out to run a camera through the lines.. But the inspection and plumber are going to cost roughly $1500 before I even get to appraisal.  

Does anyone have any thoughts?  Good deal.. Bad?  Too many red flags?