All Forum Posts by: Federico Morales

Hello guys,

I am in search of a Contractor who can provide reasonable and reliable pricing on a project like this. 

My folks have converted a garage to a second unit and I am looking to make sure it is up to code. Potentially, we may need to tear the whole thing down and start over. In which case, I would need to get bids on total tear down plus stick build, utility hookup, etc. Of course, I don't want to move forward with the project until I know roughly what the cost is going to be (within 10 or 20% or so). 

Has anyone here done a similar build out? (completely new or garage conversion?) Can you recommend a builder or give some idea of the costs involved?

Also, City of San Jose wants covered parking, but do you think they will be OK with a carport? it would be a killer to add a full two car attached garage. 

Thanks a million!

Federico

@Sam, are you concerned about insurance or anything if you go with a handyman?

Thanks,

Federico

@Katherine Robbins, thanks for suggestions on up and coming. I am considering taking a job in boston and would like to hack if possible too. 

I am planning on grabbing up a property if possible in france as well. I live just outside paris at Le Vesinet - look at maybe Vincennes or Rueil mal Maison :) do you speak french? I've been here a year. 

Leaving it furnished would be easy for me because i would want to leave my fridge, washer/dryer, beds, couch, etc. all nice, new ikea stuff too

Hello guys,

I have a first rental which was my home until i moved for work and rented it out. I took out a HELOC on it to rehab it for rental.

Here is where I stand with the current property financing:

(1) first mortgage: 320k fixed 3.75% 

(2) HELOC: 180k variable prime + .25% (last bill was 5% total)

The thing is, the property's valuation has probably shot up due to appreciation and also as a result of the rehab we did. However, my HELOC is maxed out. I would like to tap in to this equity so that i can take the money out of state and acquire some better cash-flowing properties. However, I don't want to do a full cash out refi and ruin my nice 3.75% on the first mortgage. Also, I don't want to take a big pile of cash on which i am going to be paying interest until i figure out another investment vehicle and that vehicle starts producing income.

So what i would like to do is:

(1) take out a 180K fixed second mortgage on the property

(2) use the funds to pay down the 180k in the HELOC

(3) keep the 180K HELOC (or as much of it as i can given LtV and income constraints) so that i can take out money when i am ready to invest elsewhere for cash down payments/rehabs, etc.

Is it possible to do this? is there such a thing as a fixed second mortgage?

I know i can just ask US Bank if they will let me do it, but i wanted BP's advice :)

I will post here once i have figured it out!

@Grant Rothenburger Yes, my HELOC is maxed out - Is it possible to take a fixed second mortgage and pay off the HELOC, but keep access to the HELOC?

@Arlen Chou I had a look into both notes and here is where they stand:

1st mortgage: 30yr fixed at 3.75%

HELOC: WSJ Prime + 0.25% not to fall below 3.25%. I think I also get a 0.5% benefit if i pay the HELOC out of the same bank's checking account.

So the problem to solve is to free up that HELOC liquidity. Can it be done? As Arlen says, I want to "not kill the goose", but still leverage the equity into better cash-flowing and value-add investments.

I have been looking for deals to re-invest this equity (once I can free it up). Goal is a couple of four-plexes. 

Yes, this is what happened!

Maybe I didn't get as good a rate because I was just starting out and don't have good credit (like 680 or something). Also, I was applying only with my income as wife is a stay-at-home mom. It seemed good to me and my broker said it was a good term. 

Hello guys, 

I have a garage converted to granny unit which needs foundation added in order to bring it into compliance with City of San Jose. It currently has slab foundation, but I think insufficient.

Wondering if anyone in the SJ area has done a conversion of garage into granny like this and what the options and best strategies are. 

Inspector said we can add four corners (according to conversations with my dad), so I was wondering if that's realistic. 

Has anyone else done it or something similar? 

Thanks, 

Federico