All Forum Posts by: Bethany Oh

@John Warren in Chicago proper.. probably the Logan square area. 

Hi guys, newbie getting ready to do a 203k reno loan in Chicago. I'm having a hell of a time getting anyone to recommend general contractors (required) on a 203k loan.. they have to be certified. There are about 7 companies listed on the 203k certified program website. Anyone have good/bad experiences with any of them? Or others that aren't listed that are certified as well? THANKS!!!!!

@Aisha M. i saw your post i know its very old but theres a HUD list you can look up your area and see what lenders have closed 203k loans in the last 12 months... so you know who's recently done it and might be more helpful than picking random lenders. https://apps.hud.gov/pub/chums/f17fvc/203k.cfm

you look up your closest metro area and can see the list of lenders!

@Matthew Porcaro I've listened to several of your podcasts/downloaded your cheat sheet/etc and its all been very helpful, but didn't get to the root of my question in regards to running numbers... and even bigger pockets doesn't cover the answer to my question in anything I've listened to. (Im sure if you actually use their calculator, it does it FOR you but i'm not sure which they are basing it off of - my initial mortgage or refinance mortgage?... if my goal is cashflow (doesnt have to be alot - looking for atleast $200/m) but longterm wealth of the property, and most importantly, being able to pull my money out during refinance. I'm guessing it's the post renovation mortgage the numbers should be based on, but I havent read that specifically anywhere. And that also relies heavily on the ARV and assumptions there so you get that wrong the first time, numbers will be way off or you wont be able to refi/get the money back out.

@Michael Facchini for figuring long term cashflow during a quick 203k BRRR, is it best to estimate property taxes based on what that properties current taxes are at sale or based on the new ARV? THat's where I'm confused... seems like the deal makes sense initially but once i refinance to the new mortgage, the appraiser sees the new value and that's then what they will use next year for property taxes, right? in which case, massive increases (besides property taxes being high in chicago to begin with)

So if I'm not flipping this multiunit but instead planning to renting it out/wanting to BRRR it to pull my downpayment back out after the reno/1 year, should i be running my numbers to make sure it cash-flows for the 1% rule and 50% rule based on mortgage purchase price (base price + cost of renovations = total mortgage) OR the new mortgage amount after it's refinanced? All the research I've done and this part still seems to be where I get stuck. @Matthew Porcaro

Anyone that mentioned working in Chicago have an inspector they loved / caught stuff maybe a normal inspection might've missed but took up some of their built in reno budget?

I guess i should've asked a disclaimer to this post... all super helpful information regardless, but my plan was to BRRRR the multiunit.. but now i'm hearing from other people that it's really hard to refinance out of a 203k loan once the renovations are done and the renters are in. Is that true?

Wow, i just have to say this community is fantastic. All of this is super helpful. I'm going to have specific questions for sure.

@Perry Farella that's exactly my goal in Chicago is a 3-4 unit, currently running numbers today on a 3 unit just to learn more about the numbers. Struggling to find comps for for similar units with same bedrooms/baths right in that area so that's making it difficult to analyze without a proper ARV i'm not totally guessing on. Does the ARV generally need to be a certain percentage higher than the original loan in order for a lender to green light it?

@Connor O'Brien that timeline of events is extremely helpful. I know agents always want to make it sound like it can be quick, because sellers want quick closes but obviously by your experience that's not always possible. 

Hi guys, new to the forum. After reading one of Brandon's books, I'm looking for anyone who's successfully done a 203K mortgage (multiunit if possible) that I could hear your success Story, or If there's a bigger pockets podcast episode that covers this more (but I can't find). I'm in a super expensive market (Chicago) and know I'm going to have to go FHA/203k/live in route in order to be able to afford starting out.

Thanks!!