All Forum Posts by: Henry L.

I already contacted and spoke with luke. We set up a meet date this past Monday and he never showed and stopped returning my calls and text. Which is why I am on BP looking

Hello,

Under contract for a home purchase. FHA 203k financing. Adding an addition to the home. Need an experienced 203k contractor to make a bid. A referral would be appreciated as well.

Stay away from Park Forest if you are trying to flip. Low Property values, high property taxes, and an abundance of inventory. It is a good area to do Rentals. 

Richton Park have some areas like Park Forest but you can find some gems in the more developed areas if you are patient and diligent. 

Matteson is a good area for Buy and Hold, Flipping and/or Renting. 

You can get some great MF in Chicago Heights

(In my opinion) Crete and Steger you are starting to get off the reservation a but and finding many people wanting to move out that far can sometimes become challenging.

I paid $400 for a 2 Story 1500 SF in Matteson, IL. 5 BR 3 BR, Boiler and Zoned Heating. 

@Lumi Ispas I am looking for a GC as well who can work in the Matteson Area.

Here in Park Forest property taxes range from 4500 to 6000... non occupants is more.

Im in

Welcome @Edward Terres.

I was just recently in your same position. 

1, Your debt to income is accurate if your numbers are accurate.

2. Your Down payment and closing for $100k would be more around $6500 for a FHA loan. Use this it was fairly accurate for me.

FHA Calculator ... they also have a conventional thats fairly accurate

3. What is your credit score? If the purchase price is cheap you might want to go HML then use a Homestyle Loan for the rehab and HML buyout. This eliminates the burden and restrictions that comes with a 203(k).

Side Notes:

1. Get prequalified 1st, to get that right property will take about the same time for you to save for your down payment. Lots of competition in the Chicago market, especially for MF.

2. Get a great Realtor, it makes the process do much easier. We went through 4 before we find the right one. This is just my personal opinion but with the price range you are in, stay away from Wells Fargo. They want a guaranteed $3500 commission just for representing you.

3. Im assuming you are getting a fixer upper to gain a little equity. Do a thorough walk-through and map out your design, dont worry about rushing this is your time and your money. Get a General Contractor with a good track record of working with 203(k) financing walk the properties with you. This will be a difficult they dont want to work for free. But there are some who understand and are willing.

4. Babysit you property till rehab is complete. No one cares about it more than you do. NOBODY! Dont be too agitating, learn that fine line and walk it. 

5. Many have said it and OMG I can validate it. Sometimes being a noob you plan so diligently and think it might not apply but ANYTHING CAN HAPPEN with a rehab. Contingency funds are important. Plan on replacing roof, plumbing, electrical, hot water tanks, etc. Even if you dont have to. If its in your budget but its not needed, then it can be removed and other amenities desired can be added.

If I have anything wrong someone please correct me.

@Mark Holencik  There radiators all over this place taking up valuable space, theres also pipes in odd places on every floor. Whoever designed the layout wasnt very smart. There are closets dedicated to just pipes.  I can literally remove 4 of those dedicated closets and create an extra 14 x 10 BR among other things. The pipes are in bad condition and many need to be re-piped. 

The forced air is more attractive to buyers, the extra BR adds value, the gained space from removing the radiators, minus what the cost would be to re-pipe... just thinking doing the duct work would be the best move.

@Brandon Sturgill yeah I kind of figured that much. Thanks

Anyone have experience with converting radiator heat to forced air in a SFH? Removing radiators and pipes and installing HVAC and duct work. If so how big was the job and what was the cost?

I have a SFH 3200 SqFt, Basement, Main Floor, Upstairs, and Attic Living Space. Wondering if Im about to get sticker shock.

Thank You