All Forum Posts by: Eli Sunderland

@Account Closed, I think the attic probably will meet that threshold, but that is good to know!  Just out of curiosity though, do you have a source for that info you could point me to?  I've been reading a lot of minneapolis housing code, and haven't run across anything that says that.  I understand that each bedroom has to have at least 70sq ft with ceilings > 5ft, and at least 50% of that has to be > 7ft, but I haven't seen anything about the ceiling requirements of the attic as a whole.   I could definitely have missed it though! 

@Account Closed, good to know!  I haven't measured it out precisely yet, but I think it might fit that threshold, we'll see I guess!  

@John Woodrich, sounds like some good advice!  Thanks

@John Woodrich

Do you think I would be able to get this official out to the property before I close?  The ability for me to turn this top unit from a 2 bed to a 4 bed is pretty vital to the value of the investment, so I'd like to know it's possible before I close, rather than close, bring out the rental inspector, then find it isn't doable, and have a property that doesn't cash flow nearly as much as hoped.  

Thanks!

@Bruce Runn, have you ever added an attic to the top unit in a duplex? The attic really doesn't need any significant work, I can tell people have lived in it before - It's got bedrooms walled in already, there are radiators up there, windows, etc.  Anyway,  I'm sure I'll have to pull a permit and have an inspector check it out, since I'm adding to the finished square footage of the top unit, right?  

Alright, another question for you guys- 

I am finishing the attic and adding 2 beds to the top unit as a result for this minneapolis duplex.  The ceilings in the attic are sloping, since a lot of it is A Framed, will it be an issue in rental inspection if the ceilings aren't 7 feet high throughout the entire bedroom?  Also, the staircase is kind of narrow and steep up to the attic, will that be an issue that could keep me from getting a rental license for the place?  Really don't wanna do the work, then find out I can't even rent out the top unit as a 4 bedroom.

Thanks everyone!  

Hi All,

Here's my situation:  I'm currently under contract for my first property!  A duplex near uptown.  It needs some cosmetic updates, and I want to finish the attic and turn in into 2 more bedrooms.  

My question to you all is this:  What parts of any kind of work on the home can I legally do myself?  I am going to be living in it, but also renting the other side, so I know there are some differences between what you can do yourself if you are going to rent the property out.  

My current understanding is that I can do pretty much any cosmetic work myself, painting, flooring, etc., but I'm more looking for what I legally must hire a contractor to do.  I have several friends and family members that are very handy, (one of them is an apprentice electrician), so I'd prefer to do as much of the rehab as possible, that I can do legally.  For example, can I do minor electrical work like wiring a new light fixture, or basic plumbing, like installing a new vanity in a bathroom without hiring a licensed contractor?

Also, this is slightly off topic, but for those of you with rental properties near uptown, or more specifically, in the Whittier neighborhood of minneapolis, I'd love to hear what you are renting your places for, including square footage and number of beds/baths.  I've got current estimates in mind, but I'd like to check it with your numbers, if possible!

Thank you all in advance!  

@Wane Zaza - I want to preface everything I say with the fact that I haven't even bought my first property, and everything I know is just from reading articles, listening to podcasts, or talking to investors.  

Anyway, I don't really know much about refinancing a property at 70% LTV if you don't owe less than 70% of the value of the property in the first place. It makes sense intuitively that you could bring cash or a private investor to the refinance closing, but I'd say this is another reason why going with the non-FHA low down loan to start (American Dream Loan) and following it with an FHA loan a year later is the way to go.

@Wane Zaza - The challenge with refinancing out of a low-down payment loan after one year is that most banks aren't going to loan more than around 70% of Loan to Value, so unless you buy something at around 65 or 70% of ARV and then refi after the rehab, you won't be able to refinance a property a year after buying it.

Also, there are fees associated with the refinance process. I'd say the American dream loan plus an FHA on a different property a year later is the way to go in my opinion. Although, you could use an FHA 203k loan on a fixer-upper if you are able to buy it at 65% or so of ARV and fix it up then refi it a year later. But, those are, from what I hear, full of lots of red-tape and tiresome logistical processes, so you might just be better off going with the low-down payment loan anyway.

@Alex Winder, @Amy Ranae - You could also use the American Dream Loan with @Conor Hesch on your first property, then an FHA for your second. Both low-down payment loans, without the need to refi!