All Forum Posts by: Jason Wilson

Hi, so I have a property that is completely gutted down to the studs, with entire kitchens and bathrooms ripped out(2/1,3/2 - duplex that my father owns outright but is currently unlivable and vacant. He has bad credit, very little cash to begin renovations himself, and is also just beat down physically). I plan to get a hard money loan to fix up the property then refinance and rent out one side while my father lives in the other side. He is getting older and will retire in the coming years, and the cash flow from the one side after the rehabs/refinancing should be good to cover most expenses on the property(PITI and maintenance/etc.).

However, it is an old property and I want to make sure the house is sound before I start the process of applying for the loan and getting renovation bids.  Would regular contractors I hire be able to do a thorough inspection of the foundation and framing?  I have never hired a contractor before, so this is going to be a journey.  I am trying to get all my ducks in a row before I make any moves. Thanks for any info at all!

Awesome Rob, this was a great deal! Nice to meet you today.  And I hope to talk soon.  Talking to my brother tonight and will setup a zoom with us 3 in the coming week.  Also excited for the meetup next week.  Have a good rest of your week!

Hi all,

This is my first post on Bigger Pockets and I'm looking for a little guidance on my journey into real estate. 

THE PROPERTY

My father currently owns a duplex that is registered as a vacant property because it is not in a livable condition.  The entire place needs roughly $70k (got a rough quote from a contractor my father knows) in renovations to complete both sides.  As it sits, it could probably sell for $40k-$60k in the market right now, and after renovations would be worth $130k-$160k.  The plan would not be to sell though.  The plan would to be to buy and hold, and for my dad to live in one side, then rent out the other side.  Then after a year or two, he will move out and we will rent out both sides.  Going rent for the side my father would live in (2 bed, 1 bath) is about $900-$1100, and the other side (3 bed, 2 bath) could go for $1300-$1700 per month.  (All rough estimates based off comparable properties in the area... and coming from a newbie, myself... so might be less.)

THE ISSUE

My father owns the duplex outright with no outstanding mortgage or liens from taxes.  However, he has very poor credit and owes a fair amount of back taxes to the IRS from a little over 8 years ago.  Thus he does not have the ability to get reasonable financing.  He also does not have much cash to support this massive renovation.  Also, him and myself do not think we can tackle this big of renovation since the house needs plumbing, electrical, etc.  This is where I come into play.

I recently graduated from college and started a full-time job 3 weeks ago, making $80k/year.  I have ok credit (~740), but I also have $41k in student loans.  I have about $10k cash on hand.  I don't know if the best avenue would be for my dad to sell me the property for $1, then I could try to get a loan.  I also don't know who I could call to get a loan.  I've never been to a bank/credit union to ask for a loan.

Any advice would be much appreciated! Thanks for reading my first ever post on here if you got this far!

-Jason