All Forum Posts by: Jesse Temple

Hello all,

I have been secretly trolling these forums for several years without any activity. Before starting, I want to thank all of you users, as you offer much needed detailed advice on everything in the world of RE.

So about myself, I currently purchased my first EVER property a 3 family in Zip 12159.  I purchased using a 203k loan @ $135k purchase, $75k Reno, $8k reserve.  on purchase the property was roughly 3 units, 2 1BD/1BA, 1 2BD/1BA, @ 848, 725, 560 sq ft.  When initial estimates were completed blueprints were not yet completed, and after completing blueprints estimates skyrocketed.  Blueprints redesigned to a 4 BD/2.5BA, 1 BD/1BA, 1 BD/1BA @ 1590, 540, 485 sq ft. space.  it was Originally a patch and paint job, to a complete gut reno.  The current estimate is $224k.  Bank will not move on the scope of work originally projected.  It would be very challenging to redo drawings, permits, and get new estimates (based on prints) and not know final construction cost, to match bank scope of work.  The options I see are, Cash + Personal Finance my way into property accomplishing as much as possible on the 224k, lowering expense with sweat equity, or refinance mortgage completely to compensate for cash shortage.  i wanted to pitch this out to the community to get advice on completing and exiting this very ambitious product.

Thanks for your help!!!

I think its important to specify to whether you mean residential or commercial. I know in commercial my favorite clauses would address escalation of expenses, namely tax and operating. And would ensure the base year tax include abatements.

I also have a question for you guys that I hope I can get some positive feedback on.

Firstly, let me introduce myself. My name is Jesse Temple. I am currently qualified for a FHA loan and was looking to get my start into real estate with that. I live in Central NY, and was considering a three family home for owner occupied. What I am wondering is, would it be possible with about 10k, and preapproval to arrange with a property that is in foreclosure with a scheduled auction, to get in touch with the owners, and arrange a short sale to prevent competition at an auction, mind you this is not for a multifamily but for a property with built in equity that could immediately be sold, or repaired and sold for substantial equity or should I stick to the more refined route of the multifamily until I have more liquidity to consider other ventures, is all this too vague with out more information. Just looking for someone with more experience to help ground my direction.

PS. I think this site is awesome and appreciate all you guys contributing towards such a great cause, plus its got to be fun talking about something most of you love to do.