All Forum Posts by: Jeremy Mattson

Thanks @Julio Garcia! You are correct. I talked to the city this morning and it sounds promising that I could get it rezoned. Its a 6 week process and would cost $100 for the application. I can submit the application as a "petitioner" (not the property owner) and I would also make my offer contingent on the successful rezoning of the property. 

Hi All,

Looking at putting an offer on a property that was previously run as a funeral home. Highly motivated seller who just wants it gone (with little movement/interest on the market) so I am able to purchase it at pennies on the dollar.

I walked the property and its in good overall condition. windows, trim, furnaces, floors, roof…all in good condition. With a couple modifications, I believe the exterior would looks just like a standard duplex; however, the inside would be a pretty unique rental with open concept and high ceilings (10 ft). Looking to convert it into (2) 3 bed, 1.5 bath with 1600-1800 sq ft per unit.

Purchase: 85k

Rehab: 85k 

ARV: 230-250k

Rent $2400 ($1200 per unit)

Am I nuts?? Will anyone want to rent it if it was previously running as a funeral home? Or is this a unique/creative was to find a great BRRRR deal?

Congratz Kevin! Sounds like a great deal. 

I have a duplex just a couple blocks from downtown Appleton. Love that you're improving it further!

100% for my only unit. They even asked to renew for another year (which I couldn't be happier about). Good luck to all those out there who have had tenants effected by this pandemic!

Hi All,

Looking for some advice/feasibility of a financing strategy I am looking to do on a house I am about to put an offer in on.

BACKGROUND

I have pre-approvals from both commercial and conventional loans. The commercial loan is a pretty cool option where the lender will lend 80% ARV @ 5%, 5 year fixed/20 year amortized (6-month interest only). I can get a conventional loan @ 4% amortized over 30. The property needs 35-40K in repairs/updates and I plan on living in the property while I do the renovations.

PROPOSED PLAN

My thought is, If I purchase the property using a commercial loan I will several benefits.

1. Rehab costs are rolled into my loan (don’t need to seek financing elsewhere)
2. Holding costs are decreased as its interest only during the rehab

Once the rehab is completed, instead of staying with the commercial loan, I refinance the rehabbed property with the conventional loan (as I still owner-occupy) which will

1. Lock me into a lower -fixed interest rate
2. Amortize the loan over 30 years
3. Cash flow…BOOM!!

Anyone see any issue with this?? You thoughts are greatly appreciated.

Welcome @Bryan Edwards! I'm also a relatively new investor living in the Fox Valley area. Best of luck and hope to see you at one of the local meet ups! 

Hi All, 

I wanted to bounce an idea off of you all. I have a duplex that I currently occupy with great tenants renting the other unit. Ive contemplated the idea of Air BnBing the unit I am living in on weekends (as I am typically out of town anyway) to increase my cashflow on the property. 

Has anyone done short-term/vacation rentals on one side of a duplex, with long term tenants on the other side? My concern is that it seems inevitable that at some point I will have a short term rental guest that does something (noise, parking on their spot... etc.) that will upset my long term tenants. 

Curious as to your thoughts!

Thanks

The age-old question. 

Would you rather have a full-time W2 job, that provided more flexibility and free time to seek out real estate deals and/or put sweat equity into a deal? 

or...

A more demanding, less flexible, full-time W2 job, that provided more money to invest in real estate, but resulted in less free time??. 

Thanks @Brian Van Pelt

I can keep expanding my radius, however they no longer come with the acreage, are in an older part of town, and aren’t in the desired school districts that this duplex is.

@Greg Scully Thanks! I can check with my realtor if they can run a CMA. Do properties within the same area typically sell at a similar ratio of sale price to tax appraisal price?

My apologies for the title mishap... "How do/would you assess ARV.."

If only I could go back and edit that!!