Hi All,
Complete newbie here looking into taking a small chunk of savings and start getting into some rental properties. I've been doing some preliminary reading, playing with the calculators... even attended the BP webinar last night which was very motivational! Anyways, I'm located in a Baltimore City row home at the moment as a single family 2 bed/2.5 bath. Purchased with 20% down as a conventional loan 3 years ago. I'd like to take the next step and find a duplex, triplex, or fourplex in the county to live in for at least 3-5 years and rent the other unit(s). I'd likely be able to put about 5-10% down depending on the cost. The city row home will obviously also be a full rental. I've got many (newbie) questions below with making this decision and hoping I can gain some further insight.
1. BRRR question -> If I buy a home that needs rehab, can I purchase with a hard money loan, rehab, then refinance into an owner-occupied FHA loan? If not, what other ways can I do a BRRR on an owner-occupied home? Or do I need to pick one or the other? I assume the best way to find these units are to rehab for greater profits as most of the almost turn-key properties I am seeing are market value... unless I am mistaken.
2. BRRR question -> If doing a cash out refi at 75%, wouldn't that take like, a bunch of years to have 75% down of the ARV if paying regular monthly expenses? I'm not sure what the refi timeline looks like for most that BRRR.
3. Mortgage question -> If at the end of X years living in one of the units, and can use an FHA loan while living there, are there any restrictions to move out and purchase a forever home with a conventional mortgage?
4. ARV question -> Are there calculators or special steps to determine a home's ARV?
5. GC question -> If I find a home that needs rehab, do you pay a general contractor (or if they provide a free estimate) to come to the house prior to closing, prior to inspection, etc.. at what point do I do that?
6. GC question -> Do most general contractors handle their own ideas with rehab (i.e., picking out the cabinet choices), or do they provide you with various options, or do you provide exactly what you want?
7. Since this will be my first rehab, I assume a GC will be able to handle everyyyything that needs fixing in the house. However, what's a reliable way that they don't take advantage of me with pricing? Find a reputable referral from a friend/agent?
8. RE agent question -> I bought my current home from a great RE agent who knows the area (and knows the area I want to find a 2/3/4plex) very well. Is it wise to reach out to him in help seeking out properties where money can be made and find deals in my best interest?
Thanks in advance!
