All Forum Posts by: Gary Waldron

@Gary Waldron 203k covers multifamily units (1-4 units). It does have to be a primary residence so you would have to "house-hack" & live in one of the units. You can also ask about the Fannie Mae Homestyle Loan which is similar to the 203k, but allows for the property to be investment property, a 2nd home, or a primary residence.  

Unless your broker IS a mortgage broker or lender, I would highly suggest speaking with a mortgage broker or lender that specializes in 203k or Fannie Mae Homestyle loans in Washington. They would know the specific requirements for your county. I do have literature regarding 203k loans, however, it's for Colorado buyers, but the principals are the same. The only differences are the allowable loan amounts.

I followed your link and it didn't say that the 203k isn't for multifamily, it just emphasized single family homes. If I were you, I'd do some research & maybe Google "203k lenders in Washington state". To be honest, there are many lenders who quite frankly don't know how to do 203k loans - its simply not their area of specialty. Renovation loans have been rumored to be "difficult", "not available", etc. You need to really find a lender that knows what they're doing and are experienced in these types of loans. Hope this helps. 

Hi Gary,

I am always on the lookout for potential suppliers as I drive around. I stop into any place that seems to wholesale materials and ask for prices.

I also walk into houses that are being rehabbed and try to speak to the investors, contractors, subs, and day laborers. It's possible to learn a lot from all these individuals if you treat them with respect and offer your own services wherever possible.

Good luck,

Marcela

We currently live in the east side and it is really block by block. Fair warning - prices have increased dramatically over the last two years. A house on our block just sold for almost $200,000. Insane! They purchased at auction for $110,000, spent about four months upgrading and sold it in about two months. Yes, it's cute. Yes, the renovation is nice. But if you look at the comps even the nicest house in the larger neighborhood with immaculate double lot and perfect placement doesn't appraise for that. These people are going to be underwater for years. 

Off topic. Sorry.

Take a drive around the east side. When you see a neighborhood that seems promising, walk it. We've found people to generally be willing to chat in the decent areas. It also helps you get a sense of how much you could count on the neighbors there. :)

Most of my acquisitions have been single family houses in a neighborhood called East Tacoma (in Tacoma, WA).  On average, they have been small (<1800sf) 4 bedrooms that cost around $80,000, needing $20,000 to $35,000 in improvements, and appraising around $140,000.  I rent them for $1,400 a month, though $1,200 is a little closer to average. 

Right but exclusively during the owner occupant period does HUD accept below asking or would they just wait til the open bid period I think Alex is asking here. I'm not sure how "internal guidelines" are found but here's some info regarding the hud process:

HUD will review all offers received from owner/occupant bidders during the priority period. If HUD does not receive an offer meeting internal guidelines the listing opens up for bidding to any qualified buyer, including owner occupants and investors. Bid Deadline is DAILY at midnight.

PRICE REDUCTIONS – Owner Occupants First for 5 Days

Sometimes a property does not sell during the open listing period. After several weeks HUD will reduce the price on this property and publish the re-listed property on a Friday. The first 5 days following a price reduction the property is available to owner occupants only. This shortened priority period ends the following Tuesday at midnight. From time to time HUD listings experience several consecutive price reductions.

OPEN PRICE REDUCTIONS – All Bidders DAILY

Should the property still not sell during the shortened priority period, it then becomes available for bidding to all qualified buyers again. Deadline for bidding is DAILY at midnight.

RE-LISTINGS – Owner Occupants First for 5 Days

Occasionally a property that was already in contract falls out of contract. In that case HUD will offer the property for sale again and re-post the listing. The price may be the same as before or reduced. A re-listed property is available for owner occupants only during the first 5 days. These bidding deadlines fall on a TUESDAY at midnight.

Open RE-LISTINGS – All Bidders DAILY

If the property does not sell during the priority period for owner occupants, the listing will open up to all bidders with a daily deadline at midnight.