All Forum Posts by: Andy Tavarez

https://www.middlesexcountynj....

Hi all, I'm Andy a realtor in central New Jersey, never flipped a home in my life but really look forward to doing so. I came across an off-market lead from a newly retired who wants to sell his home. He had bought it 41 years ago (built-in 1965) and did absolutely nothing to it but throw on some carpet on top of the hardwood floors and clear out a wall to make the living area/dining room feel a lot bigger. The owner wants nothing but 275k for it, not open to any other options. ARV fixed up is anywhere from $460k to $490k (if I put some serious remodeling to it). A comp with exact same layout and style home spent $60k in rehab (not replacing HVAC, or siding). Everything works fine with the home even the HVAC, no leaks just looks old. I got an estimated rehab of around $90k for new water heater, hvac, roof, electric (needs to run new wiring for lights and panel updated to comply with c/o.) floors throughout, converting a half bath to full, and remodeling 2 baths and kitchen, and other miscellaneous things like sheetrock, painting, etc. The property also needs the backyard graded (dog messed it up) and a new fence (has the old metal wiring 4-foot tall ones). Also has a covered patio that I can convert to living space for extra sqft ($$$). Also around 44k in other costs like interest, closings, holding etc.

Home detail- 3 bed 1 1/2 bath 1,472sqft

Or should I sell the home with 1-year warranty on HVAC and water heater and just do light rehab (kitchen/bathrooms) and sell it for around the low 4s.

NOT ADVERTISING PROPERTY FOR SALE! ONLY LOOKING TO HEAR OPINIONS FROM INVESTORS IF IT IS WORTH IT OR NOT!

https://njpropertyrecords.com/

@David M.

You definitely gave a more clearer example. Yes that answered my question. What I basically was asking was could I replace a Hard money loan with a conventional after I fix it so I don’t need to keep paying higher interest, if my intention was to hold it and also be able to pull out equity at the same time.

I know it doesn't make sense why would I get a HML in the first place and not just get conventional but for my scenario it's my only option for financing as of now.

Thanks again for taking time out of your day to answer my question.

Yeah I know HML is for short term which is why I wanted to refinance after to get that loan out of the way an replace with a much lower interest rate as opposed to 6-12%. Curious though if I refinance with equity in a property (example loan estimate with repair 150k total and appraisal is later than at 220k) I'm assuming the mortgage lender will go with the 150k and then I would need another loan (HELOC) to pull out some equity so I can put into another property. Is that how it would work?

@David M.

I figured it would be less if I get a 203(k) for reno since all together with a HML, their interest rate charge would be very pricy as opposed to getting a separate one. And yes my plan was to occupy the place in the time being. But now I'm realizing that I wouldn't be able to get a 203(k) because I can't occupy with a HML. So it would be pointless for a separate rehab loan.

I have cash I'm just trying to really put all of it at best work. I did speak with a HML and they were okay funding my deal but at the time my plan was to flip and sell. It is now that I'm starting to see a BRRR would be a better deal since I am a new investor and it could start me off with some cashflow while also allowing me to repeat the process.

So really after I get the project up to rent standards, considering I would already have some equity in the property after it is renovated. I can see putting a down payment on a conventional wouldn’t be as much as I thought it would be. Then refinance, move out and repeat.

Thanks for taking your time to answer and help me see the flaws, and where I should improve.

I am a new investor. I had only one deal, great experience with a live in flip I did with my mom. We purchased an REO that allowed us to buy with FHA 3.5% down. And managed to sell 2 years later and received a great ROI.

Hi! I’m planning on buy an under market single family with a Hard Money Loan. The reason why is because unfortunately most good deals I find require all cash. I currently have my eyes on one. My plan is to buy with hard money with some skin In the game and use a separate construction loan for rehab [203(k)]. Eventually after I have a month working at my original job (starting again back in August) I can get a pre approval lender for a Conventional loan. So that way I can pay off hard money liens and construction lien. And also doing this it will allow me to get an appraisal with raised equity since I will have already fixed the place up. Unfortunately due to covid I was laid off but my job really needs me back now, which is why I have the one month period needs at my job in order to get the pre approval letter again. Then after I get a Conventional loan to clear out the liens, refinance to get capital. And repeat. My question is IS THIS DUE-ABLE? Or are there better ways to improve this strategy or go a different route?

(Also, reason for conventional is because after I have 22% I don’t need to keep paying PIMI)

I wouldn't call myself an investor yet because I never closed any deals yet. But to get to the point many investors are buying in the Essex county due to according to my research a 13% value increase within the next year, due to the expansion of the commuters to New York. What would a buy and hold investor or maybe flipper pay for properties in this area? 80% of ARV? 100% of ARV? I know this question is broad because of the possible chance that repairs might need to be included. The only reason why I ask is because I'm looking forward to wholesaling deals there, specifically in Irvington. And I want to determine what would be a fair number to lock up properties under contract to make win-win deals for everyone.