All Forum Posts by: Carl Hess

Working my seventh deal this year and it is a luxury new construction multi unit near downtown Dallas. With the relationship that I’ve built from my first six deals, my lender is willing to take on a larger project. So I have my builder, lot under contract, architect on standby, and have researched the project thoroughly with the city. How do I find investors that are willing to put up six figures for a good return?

So, I am purchasing my first rental property in my home town and it's a pretty big investment. I spotted this ran down complex that has a ARV double the acquisition and rehab costs. Projecting a 6 figure cash flow annually, I decided to take a more aggressive approach into the investment world. I have an experienced contractor that will be overseeing the project as I do not live in the state of this purchase. In addition, I am using a hard money loan in which I will be paying the monthly interest with my line of credit from my bank. The line of credit will cover the payments for 1 yr. My question is can I refinance he complex under a year's worth of partial rentals? I know banks like for single family properties to have 6 or 12 months of rental income. But, what if I do not have full occupancy considering the fall season is approaching?

Adam and Neil, thanks for the advice. I called up 3 different mold removal companies and they gave me expected pricing for such a big job. This 2,000 sq ft + home needed almost a total gut. The most was 70k to re-sheetrock or 10k to replace wood as needed. 

The other was 6-9k for removal  only, no rebuild. As I listened, I realized that properly protecting my own workers and disposing of the mold properly at a facility, I could save a few thousand bucks. I'm currently scheduling my contractor to do a walk through before I place a bid. Wish me luck!

I'm a new investor looking to flip a house that has a heavy mold problem. I know that this can be a major issue being that mold has to be professionally removed and can grow to an uncontrollable level. However, the house has a great ARV that I would benefit from. Just to clarify, this home has mold in the walls, ceilings, and even on the siding. A lot of replacing of sheetrock and joist. Has anyone had experience in such a rehab? I need to know how the city may be involved in permits.