All Forum Posts by: Henri Parker

@Erica Osborn

Thanks for sharing this strategy. I will definitely reach out to some lenders to understand seasoning and terms. Can you give me some

Idea of what to expect for seasoning and terms?

I reason I was thinking about not paying for the entire project from cash is because I may have another deal I may want to work on.

Great information and appreciate the response.

@Jacob Sampson

Yes the seller is going to put the deed in my name with the initial cash injection.

@Todd Rasmussen

Thanks for the feedback, my only concern with injecting the cash is that the money will be tied up for a longer period of time and it would limit other projects I may want to work on. Some say cash is king!

Purchasing home from father-n-law

Purchase price $35,000

Estimated rehab cost - $50k

ARV - $135k

Estimated rent - $1300 month

Seller willing to take $20k at time of purchase and then the remaining $15 in 6 months

Credit - great

Question - I have the cash to buy and rehab the home, would like to hear some different strategies for buying and covering rehab costs based on the assumption that I plan on keeping the house as a rental for cash flow. I'm a new investor. After I purchase the house should I apply for a HELOC to cover the rehab cost? Then after the home is renovated and rented apply for a cash out refinance to get my cash injection out of the home? Any other recommendations that may limit my cash injection into this deal?

@Anthony Lehtio, Thanks! I’ll send you a note.

@Erika Carter my first mind told me to sell the house.

@Crystal Smith - Thanks for the additional insight into the market.  

@Joseph Konney - Thanks for the kind regards.  Appreciate the advice about protecting the asset.  Fortunately, our neighbors are keeping an eye on the property and they also park in the driveway, take care of getting the mail and just keeping the house as if someone lives there.  Thank God for good neighbors!  Appreciate the advice about the minimal rehab and potentially renting via Section 8.  I will definitely look into that option.  

@Michael Montesino - Thanks for the quick reply, yes it's definitely an interesting question that I've been pondering for some time now.  Investing in Chicago is something I've wanted to do but it hasn't been my top priority from an investing standpoint.  I was born and raised on the Southside of Chicago and all my family is still there so I visit the city 2 -3 times a year so having investments there makes sense.  

I think I've been leaning towards selling as-is vs. rehabbing and rental was not a preference but I wanted to check all options.  As you also said, finding someone I can trust to rehab and sell will take time so selling as-is is definitely the easiest option.  

@John Clark - Thanks for providing the additional insight, I've been away from Chicago a long time but I was aware of some of the issues that the city has dealt with.  Both of my parents were City of Chicago employees, both retired with full pensions from the City of Chicago but they are dealing with reduction of benefits in their retirement which is related to the financial problems of the city.  

Selling as is $60-$70k, ARV depending on extent of rehab $160k - $200k.

@Caleb Heimsoth based on my research, I think the house will sell as-is around $60-$70k.  Depending on the level of rehab it could range from $25k - $75k.  Thoughts on rehab range from:

- Kitchen and main (2) bathroom remodel including floors.

- Carpet in bedrooms

- Basement floor 

House is currently a 3br, 1.5 bath

Could easily add (2) bedroom downstairs 

- add central heating/HVAC

I have family in the area.  

Estimated ARV based on similar homes in the immediate area range from $160k - $200k.