All Forum Posts by: Colton Norman

Thanks for all the responses - @Anthony FontanaI am moving forward with the refi&hold as originally planned.  

@Caroline Gerardo Just to clarify - are you saying if I bought the property on the MLS to be aware of the seasoning requirement? Or do you mean if I were to list it on the MLS and then decide to re-fi this would somehow impact the financing?

I bought a cash property at a good discount that needed work - as a BRRR or Flip and it is nearing completion of its renovation. It is a SFH in an appreciating market, but the specific street/neighborhood is not ideal (some dilapidated houses, rough spots), however it would meet my cash flow metrics. The rising rates are causing me concern and I am looking for some guidance on what the general expectations on for how high and how quickly they will go? My plan is to attempt to sell the property now, and if I don't get the offers I am expecting, to refinance it into a rental. Does anyone think that rates will rise significantly in the 3-4 weeks it may take to sell? (Just in-case I do need to turn it into a rental.) It seems like a short enough time span to take the risk, but I don't have a concrete idea of what the rate expectations are.

Thanks

Thanks Bruce - I had a feeling that was going to be the way to go.

I am under contract to purchase a SFH in a cash flow friendly area. The plan is to BRRR the property and keep it long-term. Before closing I am trying to come up with strategies to maximize the appraisal value at minimum cost invested. I am looking for some advice on where you would spend the money?

1. The house has a covered carport that was added on at some point.  It has a drop ceiling and 2 doors - one leading into the house and one out to the driveway.  The floor is lower than the rest of the house and is concrete, with steps leading down into the room from the house.   They put in a small kitchenette combined with laundry units that seems to be some type of food-prep area.  Cabinets are old and some broken.    My first thought is to update the cabinets here and flooring, and integrate the washer/dryer into the cabinets to create a true laundry room/storage area.  Any other ideas that would add more value?

2. The house is a 1.5 bath.  The .5 bath is adjacent to the other bath and I could expand it to add a shower, bringing it up to a 2 full bath home.

Seeing as I likely only have money in the budget for 1 of these scenarios.  Which would be better for appraisal value?

Thanks!

Brrrrr! Getting colder.  You guys have any luck with this strategy so far?  This is my current plan as well for the Chattanooga market.  Would be interested in seeing how its going so far.

I don't operate any properties in Avondale.  But from talking with other investors/PMs - this definitely would be a higher risk area.  Not necessarilly bad but you would have to work that into your analysis and expectations.

The only scenarios where I would include the utilities would be a STR or perhaps a house hack where you cant separate the utilities. Its best practice to keep them in the tenants name to make sure they have some skin in the game.

Makes sense - thanks for the input.

As I was asking around earlier this year to banks and CU's about opening a HELOC - I was told by a credit union that they do not allow HELOC funds to be used for investment properties.

Just curious if they can do that?  I thought it was basically our money once its drawn out of the account.