All Forum Posts by: Denzil Dwelle

Yes, request the full amount you will need unless you have extra cash to do the rehab yourself.

Hi Kimberlie, I used my VA loan for a House Hack. One of the cons is that the appraisal process is much more detailed and picky, so if you are looking at a property that needs a lot of work, it can be a hassle to get it appraised without the seller doing a bunch of work.

A stipulation is that you need to live at the property for a year, so flips are inconvenient.

Hi Andres, there is always a difference between owner occupied and investment property interest rates.  The only workaround is a house hack, which sounds like it is out of the question.  Shop around, speak to local banks, and watch the Prime rate to see what premium the banks are charging.  After speaking with a handful of banks you will get a good feel for what a good investment interest rate should be.  In general, investment rates runs about a percent above owner occupied.

Looks like a good deal from the refinance and cashing out with extra cash perspective.  To @Tim Herman's point, your vacancy should be higher.  What is the age of the house and the major systems (how much are you going to rehab)?  If newer, then the repair and capex may be ok, but most likely will need more set aside.  So, cash flow not great on a monthly basis, but initial chunk of extra cash may be worth it.

I don't see vacancy, capex, repair, etc. for your expenses.

Hi, you expenses seem low.  Can you break them out?

Thanks for the info everyone.  Not sure if it is a leak in a pipe within the wall or from the roof. 

Thanks @Patricia Steiner - I didn't know there was such a thing as a leak detection company.  I was figuring I would need to get a General Contractor/handyman out to cut up the wall to find the leak.

Hi,

I have a unit with a water leak within the wall - an inspection found high water content in the sheetrock.  What profession do I contact to troubleshoot and fix?  A General Contractor?

Thanks.

I adjust the capex to match the age of the house and the age of the major components.  If everything has been recently replaced (roof, hvac, appliances) and the house is newer than 1995 I go low.  On the other end, I just bought a house built in 1903, with an old roof and old appliances - better believe I put a high capex in for it.  So my capex goes anywhere from 2% to 12%.

Your other numbers are good.

Hi @Dallas Sullivan.  Good luck with your new endeavor.  I invest in the area.  How are you going to communicate your finds?