All Forum Posts by: Clayton Hepler

Any local investors have recommendations for good plumbers and HVAC guys in Pittsburgh?

Is my debt to income ratio effected if I live in a house hack with rents?

EXAMPLE: $1932 monthly PITI with $2000 in monthly rent.

Do lenders look at this as a wash? Or do I still have a $1932 + Debt.

@Wayne Brooks, doesn't that signal that I am in distress? Have you ever done something like this?

We had electrical under 10K and didn't have windows that high either, nor did we have HVAC.

I purchased a triplex AS IS with a FHA 203K loan in July with the intention of house hacking it, then disaster hit.

My numbers are the following:

202,000 Purchase price.

107,000 Construction budget (left).
340,000 ARV
Last week, my general contractor dropped me. So I am out on an island now, scrambling to find a GC and subs to complete the project.

For context, we have a HUGE electrical cost that we didn't anticipate; between 20-30K of electric, we need around 10-20K in HVAC and 10,300 in Windows.

So we are at approximately 50,300 with no renovation done yet, although we have done the DEMO.

We have not pulled any draws from the bank from the above 107,000, but I am concerned that we will not complete the project, because all the units need a TON of work(about 30,000-50,000 a piece). Below is my thinking of how to move forward, and I need help!

Do all the electric, HVAC and Windows and plumbing in the whole place, but only complete the work in my unit and move in. Myself and my girlfriend have enough income to handle the mortgage payment. After we move in and all the technical stuff is done, like plumbing, electric, HVAC and windows. I will be able to put sweat equity into all the other units and eventually rent them out. The biggest issue with this is that the bank originally got an appraisal for the property with 3 units. This is my first property ever and this is a first time home buyers loan, so I thought that they may be flexible with this. (BTW, I am working with Prime Lending the HUGE mortgage company)

How would I approach them to change this up? Has anyone ever done this successfully? What do people recommend I do?

I purchased a triplex AS IS with a FHA 203K loan in July with the intention of house hacking it, then disaster hit.

My numbers are the following:

202,000 Purchase price.

107,000 Construction budget (left).
340,000 ARV
Last week, my general contractor dropped me. So I am out on an island now, scrambling to find a GC and subs to complete the project.

For context, we have a HUGE electrical cost that we didn't anticipate; between 20-30K of electric, we need around 10-20K in HVAC and 10,300 in Windows.

So we are at approximately 50,300 with no renovation done yet, although we have done the DEMO.

We have not pulled any draws from the bank from the above 107,000, but I am concerned that we will not complete the project, because all the units need a TON of work(about 30,000-50,000 a piece). Below is my thinking of how to move forward, and I need help!

Do all the electric, HVAC and Windows and plumbing in the whole place, but only complete the work in my unit and move in. Myself and my girlfriend have enough income to handle the mortgage payment. After we move in and all the technical stuff is done, like plumbing, electric, HVAC and windows. I will be able to put sweat equity into all the other units and eventually rent them out. The biggest issue with this is that the bank originally got an appraisal for the property with 3 units. This is my first property ever and this is a first time home buyers loan, so I thought that they may be flexible with this. (BTW, I am working with Prime Lending the HUGE mortgage company) 

How would I approach them to change this up? Has anyone ever done this successfully? What do people recommend I do?

Recommendations in Pittsburgh for a good attorney that understand wholesaling well? 

Who are the top turnkey Single Family Home providers?

As a wholesaler, do people find it a conflict of interest to use your license if you cannot get to their price? That is to say, if their price is too high?

Is the conversation different if a wholesaler is also an agent? Does this ever work? Are there people at a high level that do this?

@Murali Mudddan, PM me please. My company has around 80 units there. We are also interested in selling

@Joe S., thank you very much. I am looking to use a lender that will accept a 20% seller carry. Do you know of any? How would I pitch this option?

Also, I thought the 5 year balloon would make my offer more compelling?