All Forum Posts by: Edward Bowlby

Is anyone familiar with auction.com? I am looking to submit a bid and would like to know the process better before getting started.

Any house flippers out there buy their materials in bulk or get materials for a discounted price because of there repeated purchases? For example doors, flooring, lighting, etc? If so, where from?

@Kyle Fitzpatrick

@Harjeet Bhatti

The new mortgage would be for 180k, not 135k?

What would happen if I refinanced, took the $41,400 out to pay for some of the rehab costs, and then end up selling the property for 180k?

@Andrew Webber

What would happen if I refinanced, and instead of renting, I’d sell the property at 180k?

Say you buy a house with a conventional loan or hard money for 50k and put 25k into it. The ARV comes back at 100k. You ask the new lender for 75% of the appraised value and get 75k back. You're able to pay off the old lender or hard money lender as well as the rehab costs. Now, what do you owe the new lender? What does the new lender get out of this? How long does this process take?

@Harjeet Bhatti

Thank you! What does MI mean and what does the new lender get out of the deal?

@Andrew Webber

That was extremely helpful, Andrew!

If only I had budgeted the rehab better it would of worked out perfectly. Everything happens for a reason and it definitely won’t happen again!

When you say “pull out the $41,400” is that hard money straight from the bank to my account ready to reinvest? I’m not sure I get why the bank would do that/how they benefit from it. How long does this process usually take?

Say you bought a home with a conventional loan for 100k with 5% down. The ARV is 180k and originally the rehab costs were 45k but now they are 65k due to unforeseen issues. The total monthly payments are $762. I am living in the home while rehabbing as well as renting 2 other rooms for $500 a month. What is the best route to take? I know if I refinance the deal I will be "leaving money in the deal" because of the higher rehab costs, but the house is 4beds 2 bath and could potentially be 5 bedrooms which can rent for $1700 a month. Should I refinance the loan with a 180k appraisal and get 75%? If I do get the $135k from the refinance what would the monthly payments be on the new loan? Will I be able to pay off the original conventional loan? One question I have with the BRRRR strategy is once you have the new refinance loan, what type of money is it and how do you calculate the new monthly payment?

I am considering buying a duplex and living in one unit while being the property manager of the other. The purchase price is $104k and only needs cosmetic rehab. The bottom unit is a two bed one bath renting for $800. The top unit, where i would live, is a one bed one bath renting for $450. Tenants pay utilities. The taxes are $2700 and the conventional 3% down loan is at 5%. The average cost of living in my area at the lower end is $600 a month. Is living for free a good investment or should I find somewhere to cash flow as well?