All Forum Posts by: Clayton Miller

thanks

My business partner and I bought a house at 25k.  It's going to cost us 25K to finish up.  The FV is 101K which was done by our construction loan appraiser.  We can rent this place out for at least $1400 a month if not more.  Same house down the street is at 1400 and ours is nicer. 

Our plan was to brrrrrr till we die but as of now we are pretty much banker financed.  Is there an advantage to selling the house, becoming cash heavy, and then starting again with no banker financing or do we just hold onto this one, loan against it, and continue down the path?

Is there a RIGHT way to do it?

Joe,

Welcome to bigger pockets. I am also relatively new to the game. But, I hope I can shed some light. The first house I bought was a turn key. Completely ready to move in to and live in with just a little paint. I do what's referred to as house hacking. Bought my house and snagged 2 roommates who more than pay for my living expenses. This has allowed me to grow equity in my own home while at the same time gives me time to save up for my first rental property. 

2 years later I had enough money to go by my first rental property in March with CASH. Now I am fixing that home up while my main residence is still being paid for and the leftover goes into my new rental. Pretty sweet gig. Not saying it is the best way but for me it has worked out great. 

Rome wasn't built in a day and great wealth isn't either. Hope this helps. 

Thanks to you all. Mark and Lee I call Meridian and they got me fixed up. About the same price but they can do it in 2-3 weeks which fits my schedule much better. 

Once again Bigger Pockets has helped out another lost pup. 

Man this tax sale thing is tricky. 

Thank you everyone for the advise.  I was hoping to hear some different answers that would help me out quicker but it is looking like 3 months and $2000 later is what it is going to take.  

Just out of curiosity... Is there anyone in the Columbus, IN area that would like to sponsor our construction loan for us?  We need about $25,000 cash to fix it up over the next two month and then a full refund with interest will be paid off once the Quit Action Suit is complete.  

It would be great to find someone in town or at least near-by with cash.  

thanks for all of the advice,

I've got a problem.  I bought a house from a wholesale company about 3 months ago.  They bought the house at a tax sale and then sold us the deed, "free and clear" a week later.  So my partner and I began work on the home all the while filing for a construction loan to fix it up.  We've made it through the majority of the steps and now the underwriter says that the company we bought it from missed a step.  They are asking for a quiet title suit or a deed from the tax debtor.  Can someone explain to me how they were able to buy and sell this house without going through all of these steps and then tell me what in the world to do?

I'm a little worried that we got ripped off.  Is that possible?  I have the deed with all of the correct signatures so I don't understand what has happened.  

thanks for the help,

Thank you everyone for the responses. I think what I have gathered from these  is sub sub sub and when you can't get a guy or gal in there to do something now, do it yourself. 

We have rehabbed, for other people, 3 places now in the past 6.5 months. There is about the same amount of work to be done so we can guess 2-3 months will be easy. Opportunity cost wise, my time could be spent finding more money and the next deal so I think there you have it. Send my partner in to work in the off hours and send myself to the bank or prospecting. 

Thank you all for the advice. I will keep you posted on how it goes. 

So I am new to the forum, just made my first investment property purchase last week and bought a house for $25,000 cash.  3 Bedroom, 2 bath, attached garage on slab with fenced in back yard and shed.  Comps in the area are $85-$115. It is currently cut 4ft. up drywall, floor removed and full of junk.  

We have to put down new floor, small amount of electric after a new panel, redo most plumbing(above slab), new roof, new HVAC, new bathrooms, most likely new garage door.  Here is the question...

My partner and I have full time jobs.  I am a digital advertising director and my partner is a full time contractor.  We have been rehabbing other people's homes for the past few months now and are comfortable doing all of this work ourselves, neither of us have any licensing.   How do I know if it is worth it save money on doing it ourselves and not having a renter in it vs subbing it all out to gett a renter in it faster.  

Need some advice for a newbie...

Thank you both for the information. I only have $30k in equity on my condo so that isn't going to help us out too much.  I will most likely be using my buddy but have two bank meetings next week just to see if they have any options for me. 

What is a good topic for me to search to figure out what all of the costs are going to be during this transaction? 

-purchasing cost

-closing cost

-taxes

-utilities while the property is held

-repair materials and labor

-any advertising for the sale

-realtors fees once sold

What am I missing and are there any constants among these numbers? 

Thank you for the continued help,

Thank you for the quick response. So to take this a step further....

We are debating on going to a bank to shoot for a line of credit vs using my friends wealth to find everything. To come up with a short scenario. There is a $45k home sitting in a neighborhood comped at $85k. It does not have a ton of damage but will most likely take 12-15k to fix up right. My partner and I will be doing all of the work ourselves. 

Would it be a better move to ask for a $60k line of credit from a bank or use my buddy to finance it all and promise him an 8-10% return on his investment? Does it depend on the interest rate from the bank? Is there a plus or minus to using one or the other?

What would you suggest?