All Forum Posts by: Floyd Johnson

Thank you both for those details. That information makes a huge difference. Better to do the 20% down to get that instant equity and will have to look into the 2 parcel information and if I need to purchase separately. This gives me a better direction to start with but I’m sure other questions may pop up the next couple of days. 

Quote from @Jacob St. Martin:

What current loan structure do you have on the property? That will likely limit your options somewhat but I would be glad to think through it and help out once you provide more detail

Thank you for offering. I have a few options as I am still under inspection period. They are as follows. I am able to use a 2nd resident loan with as low as 3.5% down 6.1% interest. Primarily to give me more return on future sale as a resident if I understand that correctly. I also have a DSCR option with 20% down or private lender at 11% for up to 16 months. I have a credit line currently open I can use for the 20%. 

Looking for perspectives of best way to structure this deal. Closing on .3 acres that has a duplex as well as a single family home. The SFH has its own parcel number, with a curb cut to have 2 physically separate spaces. Reno is estimated at 40K for all 3 bringing total cost to $190k and bring after reno value to $300k. The duplex rental puts the entire purchase at a 1.5% of the 2% strategy. It is also zoned for up to 10 units. Without cramping the land, I could build a duplex behind the SFH, and 2 next to the duplex if so desired. I plan to purchase this as a 2nd resident for tax benefits on equity. I am struggling with the best way to process the entire project. For example, only do the reno of the 3 units and rent and refi and after that year use that refi to build more duplex on property? Should I get hard money and do the additional units at same time of renovations? I have a crew that can handle the job but I am use to phasing projects being only my partner and I. Lastly, thought of leaving money in the duplex side, separating the SFH, deeding it to an entity to refi and only take cash out that. I know a lot of moving parts here so any thoughts and perspectives on anything is helpful or even something I haven't mentioned at all. The problem with such great minds and people around BP, there are so many possibilities.

Thank you