All Forum Posts by: Jody Young

Nick Paul I may have committed a huge mistake, but I never even checked with planning and zoning to see how this home is zoned. I'm on it now!

Good point Colleen F. I'm currently advertising as FSBO but soon will list with an agent in the MLS to expedite the process.
Fortunately this property will easily support the additional units.

With respect to cash reserves, I'll have little until my home sells. One tenant will cover the PITI, even while I do remodeling. But it would be a thin couple of months.

Mehran Kamari Sorry I was short on detail, I need some creative finance ideas. I'm selling my personal residence, and I have about $23,000 in equity which is not enough to pay all cash plus some rehab. Since my home valued at around $95k, I can only get $5500 on a cash out refi.
That's not enough for a 20% down payment. Partnering with another investor may be a good option. Should I also look for private funds or hard money since a conventional loan only works if my personal residence sells?

About the property: It's a two story home that is rented to two families. Unfortunately, the home shares all utilities on one meter (has electric and gas) and the current owner pays the bill ($300 to 600 month for electric, gas bill is unknown). The $8k is to have licensed electrician relative split the electric, convert to electric hot water tanks, and open the property up to 4 units instead of 2. The tenants are both month to month and one wants to stay and one mentioned leaving soon, and the landlord is now collecting $500 and $550 for the two units totaling $1050. When I make the changes to the meters and repairs, I should be collecting a minimum of $1150 from 3 units within 1-2 months, then another $300 from the 4th efficiency apt for a total of $1450. I'm researching to see if I can collect more rent than my current projections. The PITI for the home will be roughly $400/month, and I'll have tenants pay electric after conversion.

If I may, I'd like to lean on the expertise of the community again :)
There is currently for sale a house (rented as two apt units) that once belonged to a family member here in Kentucky. I'd like to purchase it and continue renting it out. The gross rent is $1050.00 per month, and the purchase price would be less than $50k, but I need to invest about $8k asap to increase the rents to about $1400/month.
I only have $5500 available IF I do a cash out refi, more if my personal residence sells soon. What other options might I have to finance this rental and complete repairs?

Welcome Shane Maynard to BP, what type of REI will you be focusing on?
There's no doubt that this forum will give you boost thru the learning curve. Good luck!

Welcome Brian, it's good to see another member from the 'Boro! As you an tell, I'm new here also. Happy investing!

Thanks David, I'll check into First Place Bank.

I've gotten so much great information for dealing with HUD in this thread, much appreciated.

Thanks Bryan for setting me straight on that one! At face value, the Homestyle mortgage seems like a great option for investors. Do you have one lined up?