All Forum Posts by: Jamie Derasmo

Some browns are okay but I don’t think it’s trendy enough that people think it’s coming back into favor. I have seen it but it has to be done right or it’ll look like it hasn’t been touched since the early 2000s.  Light blue and greens are definitely popular neutrals right now. I agree that white makes everything brighter but if you’re renting, it’ll look worn faster. Olive green is in but it’s very overpowering as the whole room color, maybe just do a focal wall if you’re really trying to be trendy and adventurous with your color. I’d stick with a griege, light blue, or white to appeal to the masses unless you are trying to attract a specific renter. Also, tone-on-tone is super trendy right now. Maybe pick a room (office, dining, or primary bedroom maybe) and paint the walls and ceiling the same color and use a darker version of that color on the trim.

Thanks Anthony, always appreciate your input! It is an on-market property that's been on for about 3 months. Unique idea about the extra long closing, though I'm not sure I'd be comfortable with that since I see all too often seller's get jumpy, even if a contract is in place, if they have too much time so that makes me a bit hesitant. It's an unoccupied residence so (I'm assuming) they want to off-load it quickly.

I'm looking into a SFH to either BRRRR or flip. (I know I'm putting the cart before the house with this question but I'm still running numbers and market info). The septic failed it's inspection and will need to be fully replaced, I received a quote for $30K which is accurate to the system needed and high water table area. The issue is engineering and permitting will take approximately 2 months and by then it will be winter. All companies have said Spring 2022 would be the estimated replacement date due to frozen ground (property is in Rhode Island). This would only be my second investment property (other one is a BRRRR that is still under renovation right now so my money is tied up in that.)

Question 1: Would this be a property you even looked at right now knowing that it won't be complete until next summer?

Question 2: A hard money loan does not seem feasible due to the length of time I'd have to hold the property. What do you think my best loan option would be to not incur too much interest/expenses? I'd like to wrap the full renovation cost ($110K) into the loan but I don't have to if that would make getting a loan harder. 

Any advice would be greatly appreciated!

Everyone above, including you, have made great points as to why it would be a bad idea so I won’t add to that. But saying you decide to go forward and rent it to him at market value and no reduction in labor cost, make sure your lease is absolutely clear that he is not allowed to perform any work without your written consent and if he does perform work without your consent, he will not be compensated. I foresee a lot of unexpected projects in your future if he moves in. Seems like a bad position for you to be in but trust your gut, you’re face to face with him and you know your rental market. 

Without fully knowing your use or goal for this space, I’d say residing the whole place is money wasted. Before doing anything cosmetic, make sure everything is structurally sound and water (and rodent) tight. Looks like a lot of cut corners in previous updates. As Mike said, make sure that column is still supporting the necessary load. Wrap the column in cedar. Repour the steps. Do a thorough inspection of the outside and seal any holes and repoint the brick as necessary. I would paint the brown stone, siding, and those little access doors black, as well as the facia. Consider painting the window trim black as well but try it out on a digital platform first to make sure it doesn’t look off with the white window frame. Give the front door a bold color to stand out against black. If the deck in back is in good condition, paint it black and add a safety rail for the stairs going to the basement. If it needs to be redone, I’d do it in cedar. Overall, It will be a very industrial look and make all the red brick stand out but not be overwhelming.

Are you updating the white windows or are they in good condition? If not, I would replace with black windows and though it’d be more expensive, I would do them the full height of what I suspect to be the original openings if the cost justifies the end goal. I think this could be an awesome looking property, post pictures when you're done!

It might be their way of avoiding having to deal with potential lead issues. In RI, you must de-lead for long term rentals (but not short term) and if kids 6 and under have the potential to live there. They also must provide disclosures, so keeping it short term might be their way around it. You could always check with a local code via the building inspector or a realtor.

Great job on the house! I absolutely love how the backyard looks! Everything inside and out is nicely done. We’re in the middle of our second one as well except we are living in our first house until the second one is done. What range hood did you use? I’m trying to find one to build a custom hood around but all of them have buttons in weird spots.

Good on you for looking into REI so young! It's totally understandable to be overwhelmed and use other things as distractions but you're only 18! You should be doing any and everything to figure out what truly interests you. As an exercise, every time you say you "can't" do something, replace that with "won't". It'll change the way you think about it and it will also put control back into your hands. It's not that you can't make time, you won't. What you're saying is you'd rather watch a movie or scroll social media, which is okay sometimes if it's helping you de stress from a long day but what is it adding to your life after you unwind? It's okay if you've realized you don't want to do it, find what you do want to do. Be honest with yourself!

It’s super easy to feel overwhelmed when you’re trying to teach yourself something and there’s a million different ways to approach it. It’s tough but that’s also the awesome part, everyone can create their own path. Try it out for a bit more before moving on. Join a local FB investing group. Network here on BP. Try to find a mentor in your area and take them to lunch as others suggested. It’s your life, you’re in control, make time for the things that mean something to you.

What made you not want to counter back? Have you run the numbers in the calculators here with accurate ARV and renovation costs? If it's a great deal, it could have been worth trying to work it out by countering instead of just saying no unless you decided it was not what you wanted after all. I know many real estate agents who will not go back even if it was the only offer because you already said no. It's all agent dependent. Are you working with an agent? If you like it and the numbers work, it could be worth going back with a new offer. As others said, expect most offers to be rejected, don't get discouraged!

The fact that it’s a high cost of living area won’t matter to the loan officer, all that matters is your income, debt to income ratio, and credit history. Different zip codes will slightly change what you can borrow due to property taxes but it’s not such a huge difference. You can research areas to see where you’d be willing to live, and figure out if there are more house hacking opportunities elsewhere, like in Newport and Middletown. 
Definitely get with a great mortgage broker/loan officer to see what you can borrow and they can suggest ways to increase your buying power and talk to you about different loans (FHA/conventional/etc) Consider multiple ways to house hack, like buying a single family and renting out your extra rooms or a duplex/triplex to rent the units.

I’ve never house hacked so I’m not sure how they would qualify you for a Owner-occupied multi-family but I always keep my lines of communication open with my mortgage broker so I know all my options while I’m looking at my next investment. 

Great first start by saving that amount of money per month. If you’re serious about wanting to house hack, prepare your finances, reach out to a mortgage broker tomorrow and be prepared to have your credit checked so they can give you an accurate number. With house hacking, you still want to buy a place where you can force appreciation (with renovations).