All Forum Posts by: Jonathan Basden

I started the process for a refi to pull out some equity for my first deal.

The appraisal came back low in my opinion (292,000) 20K less than it was one year ago when the interest rates were a full percent higher. (According to what I researched.) Average property values in my area (Roseville CA) have also increased by 2% (also according to my research).

We’ve added value to our home by extending the living space into the garage partially (75 square feet). This allowed us to add a dedicated laundry room and a walk in pantry. Both of these things are not common in this or nearby neighborhoods.

It seems as tho they used a calculator based on comps which had knocked the price down, and rightfully so, for our lot being smaller than most nearby. They’re not adding value for though for the added rooms, however. The property is also in great condition, IMO, as we remodeled the entire inside of the property about 4 years ago. I mean everything from the floors up to removing popcorn ceiling. Everything was replaced.

Has this happened to anyone else? Is this common?

For what it is worth:

Zillow estimates 331,000 - 370,000

Redfin estimates 312,500

Trulia estimates 353,000

Appraisal as of May 2018: 312,500

Appraisal as of today : 292,000

My primary residence was purchased FHA and we have rehabbed ourselves then recently refinanced. I have a family member who is interested on my next venture, directed toward a multi unit. He was initially looking at buying a home for himself using the FHA loan. I suggested we both go in on something larger to provide some cash flow and it was my understanding that you can utilized the FHA benefits again and again so long as you or all parties do not currently have a FHA loan. We are both unsure at this point if we can both purchase something FHA since I have already used this program before and he has never purchased any properties.

Thanks Larry T. ! It seems like the fastest way to for me get involved as well. Appreciate the feedback!

Would a bank shy away from funds provided for a down payment on a commercial loan that came from a home equity line of credit?

Dave Foster I see. And again thank you very for taking the time with me. Very much appreciated. I will most definitely be working my "vocabulary" here.

Dave Foster , thank you for the information. If our intent is to buy, rehab and rent for total period of time say 1 year wouldn't that be considered an investment? At which point after that "we are no longer interested in this this investment" we sell the property and use the profits purchase rentals in another market where returns make more sense? Could a 1031 exchange be used in this situation possibly?

Could you flip a house and use the profits through a 1031 exchange to purchase a rental property?

@David Hays 

Excellent tip, thank you. I do agree that when the for the first flip comes all costs will be Determined of hiring contractors. I do know my way around things here and there and if the opportunity arises that I can save some money, sure I'll do it. But, I do have a full time job that provides tons of overtime. Working a 12 hour day to then go and work on a rehab all night is not appealing. 

@Gordon Cuffe thank you for reaching out.  Yes, please feel free with any questions. I would love to help the community in any way that I can. 

Expressing my new found interest in real estate investing to a coworker he informed me the property he is currently renting is for sale off market. They haven't talked to an agent etc.. Details are: House was built in the early 20's Rehabbed in 85 10 acres of land 2 barns, one small one large in comparison The big question I have is this - they have a small house on the property that was built without permits. Would this discourage an investor? Or simply put is the offer going to be smaller due to having to demo an illegal structure? It is my understanding the seller doesn't owe much left on the property and lives out of state. Bonus. I plan on going by tomorrow to take pictures and analyze the house, ask about the septic etc... Drive around the area and see if any other properties have maybe been re-zoned with multiple single family homes. Am I looking at this right?