All Forum Posts by: Codi Peterson

@Tomiko Graves I would reach out to other real estate investors in your area and ask them what they pay. That’ll give you the most accurate picture of the market. Most people are more than happy to help, especially if you are just getting started. There are plenty of real estate investor networking groups out there.

@Jonathan Escobar in Brandon Turners book on rental property investing he talks about using forced appreciation to refinance. This means, that through rehabbing the home, you have increased the value of the home enough that you can use the new equity towards the “down payment” of the new loan.

For example.

Purchase a home worth 100 K using FHA loan with 10k down. Mortgage = 90 K. Equity = 10k

Do 20k worth of improvements to the property. House gets appraised at 140,000. Mortgage = 90 K . Equity = 50k

Refinance to conventional loan using 20k of equity on 90K loan and take out the 30K in cash.

Repeat

@Don Spafford Thanks! We are planning on house hacking so this could be a great option!

Hi team! I'm new to Bigger Pockets and looking to buy a small MFR here shortly. We found a decent sized duplex in Rigby Idaho for ~180 K and went to put an offer on it, but our lender said that we'd have to put a minimum of 15% down for a conventional loan and that the FHA would never get approved because it needs some minor repairs. We only have about 6% and so it looks like we are going to have to pass on this deal. Is this a common policy that y'all have seen from lenders or is it time to start shopping for a new lender again?