All Forum Posts by: Fas McO'nen

Hi BP,

I just got my first fourplex under contract. I just found out that the property is zoned as R-6 (commercial) but by grandfathering rule, it is currently used as a multi-family residential. My lender said that they don't do commercial loans. She stated that they would have to appraise the property and if the appraiser states the "best use" of the property is commercial then they can't do the loan.

The area has a lot of multi-families that are all zoned as R-6.

What advice do you have? I don't think requesting to get it zoned to R-4 (residential multi-family) is an option but my question is, what are the requirements to getting approved for a commerical loan? I understand the interest rate will be higher but even at 6.5% interest the cashflow and ROI is pretty good. I want this property really bad, but not sure of the best route to take. Any advice is greatly appreciated!

Thanks in advance

 I hear you! I'm always looking for deals on multi fam only because I invest in cash flow and not in appreciation. I'm breaking my own rule in this case only because it's new development in a booming area (hopefully) for a quick flip as soon as it's completed. We'll see how it works out.

Hi Cody,

Thanks for your response. What I'm currently looking at is a new development. I put a $2,000 deposit (refundable) for development that's going to take place next year. The deposit is to give me priority on choosing what type of property to buy before the units are advertised to the public. There are many investors that have put in a deposit. Let me know if you're interested and I'll give you the rep's contact info. She wants to be called directly so she can put you on the list. The builder is selling it at a discount for "VIP investors" (those putting the $2,000 deposit.. which by the way, goes towards the purchase of the property if you decide to move forward with a purchase). With Midtown being a hot area, I'm assuming that I'd instantly be sitting on equity when that thing is built up and sold. They won't need a down payment until fall of this year, so in the meantime I'm doing my research and due diligence, running comps in the area, etc... (condos start at $190K, 2 bed 2 baths start at $270K).

The new development will be at 4001 Main Street. What do you think about that area? Feel free to message me directly. This post does not give me an alert when someone replies.

Thanks again and let me know if you're interested :)

Fas

hey BP family....

Anyone investing in the Houston area? I'm looking into investing in the midtown area and was wondering if there are investors/residents of Houston that are familiar with the area and what your thoughts are. Houston is an oil-driven market, so when oil price goes down, layoffs are inevitable. And of course, when oil price rises then it's a booming economy... at least from the little I know about Houston...

please give me your take on what you think about Midtown or the museum district, specifically.

Thanks in advance,

Fas

Hi All,

New to BP! I loved all of the BP podcasts on youtube so I decided to join. I'm from Austin. I travel regularly to Houston and San Antonio, so feel free to connect if you live in the area.

look forward to meeting a lot of people here... let the journey begin! :)