All Forum Posts by: Dustin Tucker

Short answer is as little as possible.

The long answer is it depends on the deal.

Typically you end up in a subject 2 situation when the current owner has little or no equity in the property, the current advantage of subject 2 properties is that most mortgages are below current market rates.

Keep in mind when acquiring a property subject 2, in most instances you are not notifying the current lender of the change in ownership, and most if not all mortgages have a due on sale clause, which is the lender's decision if they want to enforce it or not.

I personally like the idea its a great way to get investment properties with low rate loans, that with most likely appreciate in the coming years.

Hello,

I've been building for 10+ years in Texas.  If I were you this would be my game plan.

1. Go to https://www.architecturaldesigns.com/ and pick out your house plan. (you may want to pick out several based on different lot situations)

Based on your plan you should be able to get estimates, You can either go to builders with their plans and ask them their cost to build pre sq.ft. or sq.m, or you can get actual pricing based on your plan.  One option is to go to neighborhoods where they are actively building and meet the carpenters, plumbers, hvac, electricians, that are doing the work.  Also you should try to find a construction manager and take them to lunch, they should be able to give you guidance on cost to build.

2. Identify a property to build on, I don't know in Nova Scotia what the replat or subdivision rules are, but locally we can typically purchase a property and do a minor 1 lot into 2 lots subdivision process in less than 6 months.

(Things to look for on your lot.

1. How level is the lot?

2. Is the lot Cleared?

3. Will the lot require a retaining wall?

Before contracting on the lot, you should check with the local municipality to verify building requirements, current code requirements, list of required documents, surveys, soil tests, engineered plans, etc.

Once you have identified your lot and finalized your estimate its time to build.

You or your GC will get the permits.

For the final build, there are 2 ways to build, as either a cost plus, or fixed price project.

Hope this helps, let me know if you have additional questions.

Hello Jovan, I would think appreciation is based on scarcity of the property, if you buy a home in a cookie cutter neighborhood, you probably aren't going to see a lot of appreciation.  However if you purchase a unique property with a view, close to town, etc. You should see better appreciation.  

The borrower has a SFR, the are renting out to a tenant, who is running a Adult Family home/ Hospice operation.

Hello Adrian,

Can you expand on your statement of Bringing equity to the table? Do you have a property under contract with equity?  Are you looking for great projects to invest in?

I can help you with a 2-4 Unit 10% down payment, are you doing any rehab to the property?

We provide Fix and Flip loans across the US for investing in your property up to 75% LTV, we can close as fast as 48hrs.

Call us today 903-647-6036

Hello,

I have a client with an adult family home in Washington State, they are looking to do a cash out refinance.

Here is the property info: $570,000 Appraised Value, $2829 Annual Insurance, $3,000 Market Rent, $4,200 Actual Rent, $5,175 Annual Taxes.

Borrower has a 720 Fico, and owns 4 other properties, let me know if you can do this.

Thanks

With Showings, and mortgage applications at all time low's I would price the property below market on your rent, find a great tenant, and wait 1 more year to sell.  Now that interest rates are falling, you are going to see even more appreciation.

Hello Jonathan, welcome aboard, the community has everything you will need, from education, Q&A, and seasoned pros.