All Forum Posts by: Christina Traffanstedt

@Pete Schmidt thanks! basically what I'm seeing are houses that were built in the mid to late 1900s and either the demo has already been started or they've just been left for years and you can stand on one end and see through to the other end. Entire walls missing down to the studs, patches of the ceiling gone, pieces of the pier foundation caving in, windows missing/broken out, etc. To the point where you can't even tell which rooms are supposed to be which, no cabinets, sinks, or doors in sight.

I don't see these and automatically think teardown but I do think it needs just about everything inside and out, up to rehabbed standards with granite and laminate hardwoods on the finished end so I am trying to get a better understanding for more significant level flips like this as opposed to just the standard cosmetic updates to a livable house that we'd otherwise be doing. Or maybe it is cheaper by that point to just finish the demo, teardown the house all together and rebuild from the foundation up?

@Jay Hinrichs Thank you! We wonder if adding onto the houses to say add more bedrooms or bathrooms would be worth the cost and make it sell for more on the back end. And are mainly thinking of new construction when it comes to getting bigger lots that can be subdivided then adding more units onto them and making them into rental properties so if we have a better idea of new builds with permitting and everything of course that would help when trying to analyze if it would be worth the cost on that front as well. If I'm understanding correctly, adding on to an existing structure will have potentially cheaper permits than separate new construction? would this apply to turning a single family into a multifamily with shared walls as well?

Thanks to everyone for the advice, I clearly still have plenty to learn! Sounds like it may be better to focus more heavily on wholesale and flip projects as I'm still building credit to gain some capital for down payments then pursue conventional loans when that time and the right property comes along. 

@Tom S.  Thanks! I am very new to BP but it seems like the perfect place to be since I'm trying to get into investing, there is a mind-blowing amount of information on here 

Does anybody have a ballpark idea of price per sqft for what it would cost to rehab a house that has to be taken down to the studs? Including demo, electrical, plumbing, walls, flooring, roof, etc. Basically just working with the existing foundation and what ever studs/framing can be salvaged on a house that has just sat vacant for however long. 

Similarly, what about new construction like adding more square footage onto an existing structure?

Hello BP community! This is my first post but we have been going around and around on this so I figured the forums might be a good place to find an answer. I know there are tons of fix & flip hard money loans out there, but I'm wanting to get into buy and hold properties and need to learn more about options for financing them. 

I'm currently a college student with the typical student's mediocre credit and income, my dad who is my partner when it comes to RE recently had a nightmare primary residence purchase which made his credit score drop as well as a job change so we're both trying to get our personal financial houses in order and doubt going conventional will work. 

Our original plan as advised by the previous CPA was to use his Solo K retirement to fund down payments and combine that with long term hard money loans but the new CPA said using a Solo 401(k) to invest is a bad idea (something about the taxes being higher than potential income?) so now we're back to square one. 

- Are there more financing options that I'm not seeing? 

- How likely are banks to loan on buy and hold properties you don't plan to live in under the basis that they will be performing assets?

- Is it even possible to get rentals to cashflow with HML interest rates in the double digits? (most properties I've analyzed so far work beautifully with cash but not when financed, especially at higher rates)

- Anyone in the NW Oregon area have recommendations for mortgage brokers or hml who work with investors on buy and hold?

- What is your strategy for financing buy and hold properties?