All Forum Posts by: Bob Bevis

Another option for you might be to talk to Triangle Credit Union.  They are now offering a 40 year mortgage and first time buyers can put as little as 3% down.  It might be a great option to help get you into a multi-family and perhaps with the lower payment over 40 years, you might have a better chance of qualifying.  Good luck!

@Axel Meierhoefer I'm more interested in understanding the steps in the process for taking on a project like this (converting from offices to apartments) and if there are things that I should be thinking of that I am not.  I normally buy properties and do conventional 30 year financing or a commercial loan amortized over 20 or 25 years.  It really depends on the deal/opportunity - 2-4 units or larger.  I have some private money lenders that I've partnered with before.   For this one, I'd likely use a commercial loan with a local bank.  They would probably fund 80% of the initial deal and provide a line of credit for 80% of the construction cost.  

I've searched the forums but haven't quite found what I was looking for.  In this hot real estate market, it's been harder and harder to find good deals.  An opportunity recently came up that I'm excited about but it's a little outside of my normal buy and hold investments.  I'd be looking at acquiring a 5,000 sq ft building that consist of a single 2 bedroom apartment and about 4k sq ft of vacant dated office space and converting the office space into 3 additional apartments.  There are about 4 bathrooms in the office space, electric and lighting throughout, 3 heating systems (1 in the apt and 2 for the office space).

Today the zoning is commercial.  A couple of concerns come to mind that I need to figure out the answers to:  

1. Zoning - will the town grant the variance to convert the entire building to apartments.  (initial call into them suggest that it may not be a problem) 

2. Septic - the current owner doesn't know what is in place but I'm guessing it will need to be re-done or updated to support 4 total apartments.  

3. I'm thinking that I'll need to hire: Architect to analyze and design the best use options and building plans? Attorney to present the plans to the town board for zoning?  Contractor that can handle this type of renovation?

Rough numbers - I think I can pick this up for about 350k, I'm estimating about 150k in repairs/remodeling.  I should be able to get about $6,500+ in rents once it's done.

What else should I be thinking of?  I'd love to hear from anyone that's tackled this type of project before on their lessons learned.  Thanks.

Really enjoyed reading your journey and applaud your leap and success to date.  In the past 2 years I’ve gone from 1 to 13 doors in Southern NH on my own and am doing my first partnership deal on a 12 unit apartment building (under contract) while still working my W2 job and acting as PM.  Who needs sleep.  If your ever in Southern NH, hit me up.  

@Jon Proulx Rates are crazy low so it's a great time for a refinance.  I've used a company called OwnUp on four different occasions for investment properties (all in NH) and I'm currently doing a refi on my home.  I used Tyler Stinson as my rep.  Their technology shops for the lowest rates from multiple providers.  I just got a 2.25 on a 15 year fixed.  

As for your second question, it depends on your investment goals and individual situation.  Money is cheap so I'm using as much leverage as possible but also see value in paying down my home.  Best of luck.

Looking forward to making it to another one of these @Gal Peretz.  Unfortunately I’ll be traveling next week.  Enjoy.

Thanks @Tom S..  I'll check them out.  Also, I found a company called OwnUp (based in Boston) that I spoke with that seems to shop it multiple lenders and they are quoting better rates than I was finding elsewhere.  

What banks, loan officers or direct lenders would you recommend using for traditional conventional mortgages that understand the Investment property scenario vs. traditional home buyers?  I can search google for rates and make calls but I figured the BP community may have some recommendations.  Thanks!

Hi @Joe Cote,

I'm also fairly new to the BP Community. I just closed on my 2nd SFH earlier in Dec. as a rental property up in Concord and am knee deep in learning experiences. I own another in Merrimack that I've had for about 5.5 years but looking to accelerate. So much to learn. Happy to connect. I also just attended my first of @Gal Peretz meetups in Nashua in November and hope to attend more as my schedule allows.

-Bob

Thanks Ned. This would be a Brrrr strategy. Plan to close in 30 days. I have cash available (currently invested in the market that I have access to) with reserves if needed. If I use cash to buy $163k and then cash for rehab $20k. The rehab would be done in phases due to winter. Inside done in 6-8 weeks to get a tenant in the property and the outside done in April. Then I would refi...assuming 225K ARV, I could pull out $168k and have about $15k of my cash in the property. Other option is $32.6k down, plus $20k rehab, in for $52k and could refi in 6 months but not sure what makes the most sense as I'd be paying closing cost again. Thanks for any input.