All Forum Posts by: Ben Hutto

@Andrew Syrios

Thanks Andrew. That makes sense. I figured my personal lender was a bit more on the stringent side. It's helpful to know that conventional financing may still be an option and that banks may even lend on repairs.

@Andrew Syrios

Thanks Andrew. When I talked to my lender on my personal home, he basically said that the house has to be move-in ready to get conventional financing. I told him that we have cash for 25% and any repairs and he still made it sound like conventional would not be an option. This may just be outside of their comfort threshold.

I’m working with three partners on our first brrrr. We were doing some homework on financing when a great deal fell into our lap. We decided to make an offer on a 4/3 single family. After a few counters, the offer was accepted and we are under contract as of this morning. We have enough cash between the four of us to put 25% down and still have enough to complete the $25,000-$30,000 in expected repairs.

Financing is our issue. At face value, the house is in decent shape. It definitely needs one bathroom reno and a water heater to be livable. There is probably more, but we won’t know until the inspection in two days. That said, what are our financing options? Is conventional financing out of the question? We’re considering a commercial loan and hard money as well. Our offer only states that we need to apply for a loan in the first 7 days after ratification and we have a 45 day close.

Any pointers would be greatly appreciated!

@Mark Lynn Great, thanks for the help.

@Mark Lynn I’ve heard good things about them. Any idea if they’d do an investment property?

Hey BP,

I own a property free and clear of debt in Columbia, SC. I'd like to look into a HELOC/home equity loan. Does anyone have a go-to local bank or credit union for this? Do they typically loan 70-80%? Just trying to get a lay of the land.

Thanks!

@Bobby Montagne, I've heard of that strategy, but haven't looked into it much. Where could I learn more about that? Is there a threshold amount that you have to lend? What does it look like from the other side (what if I wanted to borrow)?

@Matthew Thomas, I bought in North Chesterfield. I'm still 10 minutes or so from the fan/museum district and 15 from Scott's Addition. Most of the homes in these more desirable areas with the same # of bedrooms, bathrooms, and similar square footage were double what I paid, but rents certainly didn't double. 

@Dave Foster and @Rachel Pivonka

Thanks for bringing this back up and closing the loop! This has been incredibly helpful.

Matthew, welcome to the forums! I was in very similar shoes around this time last year. I started looking in December and closed in February (3 BR, 3 Bath). There are a million strategies to use, but as others have said, house hacking is a great way to get started. I don't like the term "hacking" because it makes the process sound over-complicated. 

I live in one bedroom and I rent the other two bedrooms out to close friends. Granted this is a little easier being single, but to me, it didn't feel like a hack. Before I made the purchase, my friends and I set very clear expectations of each other. So far, it has been a win-win for everyone. They get a responsive landlord that is looking to continually improve their living experience. I get to live with close friends that pay on time and take care of my property.

Just some thoughts/my opinion!

Hey all, just saw this thread. I'd love to be a part of any meetup or email chain. I'm working to find my 3rd investment property and would love to get more connected in Richmond! Who is organizing this/who should I reach out to?