All Forum Posts by: Bill J Fay

I prefer to use my own scope of work on Excel that I have made based on previous projects. If you are just getting started, the "Rehab Estimator" that BP has is a great tool to use. 

Sometimes big, uneven transition periods may cause some buyers to question the integrity of the renovation. Stacking flooring on top of old flooring is quicker, easier and cheaper to do, but not by much. I would listen to your Agent on the recommendation and pay the extra to make it one even level throughout. 

A cosmetic update to 1 bathroom in your home usually doesn't build in a ton of value unless you purchased the property for a discount. Is your goal to sell the house? Check how much comps are selling in your area with updated bathrooms and you should get a good idea how much that bathroom update will pay in dividends.

I would follow the comps in your area. I like your reasoning for the primary bedroom. LVP makes sense. Since it's a flip, you may be able to get away with carpet in the other bedrooms to save you time and money. Make sure that is consistent with the comps though. 

Buying properties that are occupied can be risky (especially in certain states). Hopefully you budgeted money for this expense. Have you had a conversation with the seller to establish expectations with the current renters in place? Since you don't own the property, you cannot give the notice yet, but the seller can. If you wait to give them notice when you take over, cash for keys might be your best option. Set an incentive to pay them to move. Depending on the price, you can stagger like so: $2k to move out in 2 weeks, $1k in 30 days, etc. This gives them some money to move and find a new spot and allows you to have a vacant house without too much time/$$ wasted. 

Congrats on getting interested and proactive so early! Many HMLs will work with 1st time investors. They most likely will require a tad more down with less leverage as long as the deal makes sense. Check out BP preferred lenders here. 

If you are flipping the property, check the condition of sold comps in your area. If it is a rental, check with a local property manager to get their opinion on how much you can rent in the AS IS condition vs how much more you can rent the property for fixed up. Based on your reno costs, you can see if the ROI is worth it for you. Make sure you are speaking with quality PMs and contractors though. Ask for referrals from your Agent.

Hard to give you an opinion without seeing the layout, price point, and current condition. I would check what the most recent comps have and follow. What is the difference in rehab cost? Assuming the laundry is currently in the basement, I would keep it this way to avoid the larger expense, unless comps are selling for much higher to confirm the ROI works out.

Most lenders will want to see proof of funds in the form of bank statements with minimum seasoning of 30 days. 

I would recommend the "Find a Lender" tab on BP! They will have a list of national lenders or there's a drop down with Texas specific investment lenders. 

You can find DSCR Lenders that can cash out refinance with your loan amount limited to your full cost basis (purchase price + renovation) with no seasoning. Additional limit will depend on seasoning and credit score.