All Forum Posts by: Henry L.

@Josh Sartori what was your cost to install and do duct work and what size was the project?

Hello BP Community,

Looking for a reliable Realtor near the Park Forest, IL area. Ive contacted several through realty websites like Zillow, and Realtor but it seems they are too busy to get back to me.  2 weeks and no response or follow up.  Any and all suggestions and/or recommendations are grateful.

@Susan Winderman look for lenders who specialize in the HomeStyle Loan. Its an FHA loan for investors that offers the rehab inclusion you are looking for without the owner occupy. Or you can do the 203k then refinance to a conventional loan

thanks for the response Chris.

I thought the Homestyle loan was based 50% of the ARV?

where i got my info from

Sorry meant Then my loan will be $160K - 15% down = $136000 / 50% use for loan = $68K - $20K purchase = $48K total for rehab.

Hello BP,

I have been looking into flipping homes and want to take that step. We feel our best option is the Homestyle Loan. But we have a few questions. 

1. About possibilities of approval. 

2. Receiving adequate funding from loan for purchase price and reno budget to based on the Homestyle LTV and ARV.

3. Quantity of possible Loans involving the Homestyle Loan.

1. About possibilities of approval.  

- credit score of 695

- a yearly income of $85000 and in my career 8 years

- a DTI of 18% that includes CC, student loans, and a Bank credit builder loan

- 1 negative, a bankruptcy 18 months ago

With my financial history how possible is it for me to receive the Homestyle Loan?

2. Receiving adequate funding from loan for purchase price and reno budget to based on the Homestyle LTV and ARV.

I only want to rehab homes in my old neighborhood of Chicago. Im looking at several properties (total guts) average purchase price of $20K but once rehabbed comps sell for 150K to $180K. If I am understanding the Homestyle equation correctly, if the ARV (for example) is $160K. Then my loan will be $160K - 15% down = $136000 / 50% use for loan = $78K - $20K purchase = $58K total for rehab.

Question 1, Are my numbers correct? 

Question 2, I know without looking at the property for those of you who may reply its hard to answer the question, but is $58K an ok budget for a total gut? I really want to put about 75K into it. Its a 3Bed 2Bath 1100 SF, solid foundation.

Question 3, Since the down payment is more than the value of the home would it make since to just purchase the home then get the loan? But even in that scenario I would be paying double down payment because I have purchased the home and I would still have to put the 15% down for the loan and unfortunately I only have enough funds for one.

3. Quantity of possible Loans involving the Homestyle Loan.

In a perfect world if everything ran smoothly... received approval, appraised and value price matched, adequate funds for rehab, how many Homestyle Loans can an individual have? I ask because if everything worked out I would debate on renting then looking for another property to rehab. 

Thank you upfront everyone. Sorry for being long-winded.