All Forum Posts by: Devan Johnson

Thanks for all the advice. To answer everyone questions, the cost of the project is absolutely the best cost around, finding anything cheaper is unrealistic. I know this from getting three different bids from outside contractors, and getting two bids from contractor buddies of mine. Permit fees and utilities is what's really driving up costs. 

Prefab is something I haven't considered, but remember this is a built above a two car garage, I don't think that's realistic!

The price of construction in the front range is a whole new animal. 

Also, I'm a finish carpenter that's done similar projects. So I have a pretty good handle on costs. Costs have the potential to go down significantly as I will be doing the finish work, but I'm making my assumptions as if I subbed out everything.

Estimating costs by straight square footage is not a good tool for a project of this type, as it really doesn't account for tying in utilities, permit fees, raw water fees, or possibly adding a water tap. 

But the good news is that the numbers still work for the project, so I'm still motivated to go forward. 

So for financing, I guess the biggest issue is finding a HELOC that offers 90% LTV, which I haven't been able to find. If anyone has any advice there, I'd appreciate it, thanks.

BP experts help me out!

Situation: I own a home in a pretty prime spot here in Colorado that is zoned for two residences. (Super rare and super lucky)

My plan is to build a carriage house above garage 600 sq ft, 1 bed/1 ba.

Cost to build: 150K

Assuming Rental income approx $1100/mo (conservative)

Currently owe 290K on current mortgage (4.1% 30yr)

80K cash on hand

Everything is ready to go: architecture, engineering, permit is almost ready to submit. 

I'm having trouble financing this project. Open to suggestions. HELOC? cant get get enough out of that strategy ( at 80% LTV)

Construction loan? terms don't look favorable. Plus I'd end up refinancing my entire current mortgage at a higher rate ! (because rate have gone up)

Thanks in advance!

Hark...I would buy my primary first, but that's not the opportunity that's presenting itself right now. 

Thanks Bill. Duplex market is not great here unfortunately. 

I guess as I think this through it doesn't matter when I purchase a rental (as long as it is declared an investment) as long as I have an adequate income to debt ratio. And if I put 25% down my rate goes to 4.25. So still worth pursing I think. 

Thanks. So I'll conclude that the only real option at this point is primary residence first, wait a year, then rental property (at a much higher rate) later. 

Situation: All of my assets are now liquid. Currently renting myself. Looking to buy a primary residence and 1-2 income properties.

 Because rates are so low, I would like to conventionally finance (20% down) a rental property, because this is the opportunity that has presented itself first. 

If I declare investment as such my rate  is 4.5%

If I declare the investment as a primary residence my rate is 3.8%. Obviously, I'd like the lower rate. 

Question:

What if I just take out a primary residence loan for a rental? Is this rule enforced? Will it become a problem if I try to take out another loan for my real primary residence?

Thanks in advance.

 I should probably qualify my $250 quote as materials only. Tools and forms add extra, but still cheaper. I could go into a lot of detail but here's some info to get started.  Tons of online info out there. 

http://www.concretenetwork.com/outdoor-kitchens/gl...

http://www.howtomakeconcretecountertops.com/

https://www.youtube.com/watch?v=HNmJr7cQlkQ

Here's my last kitchen remodel, briefly shows my concrete counters being made:

https://www.youtube.com/watch?v=KPCNTYohMIc (skip to 3:30)

I've installed in both cheap rentals and million dollar show homes. (as a contractor, not as an investor).

PM me if you want more info, as I don't want to hijack this thread ;)

Here's my last project, using polished concrete with glass aggregate

My plan going forward is to use a similar design for rentals. Total cost for these counters was $250. 

Hope that helps.

Aaron, you're everywhere! Thanks for the link.