All Forum Posts by: Justin C Huggins

@Andrew Postell

That loan was mentioned, but the PMI was going to be double that of the 203K. And it is a single family home.

I have recently put a offer on a home for $87500 that needs about $45,000 dollars worth of renovations. and that was the exact bid for the renovation. I am currently looking at 203K standard and was shocked by the huge closing costs. $8900 to be exact, any ideas on how to renovate a home with less closing costs associated? This will be a primary residence home and the ARV should be around $150,000. any loan or loan combinations to help reduce some of these huge closing costs and fees? Thanks,

thanks for the information as far as the legality of it, there was a 12 month owner occupancy area. Does this include renting and selling? @Jeff Dulla I guess I don't understand completely. I understand they won't make as much interest off my loan, but I am charged fees in the closings docs that would be paid when I close.

My wife and myself purchased a home that was somewhat a fixer upper.  We have lived in the home ever since we bought it last year and have done several repairs and upgrades to the home.  We have recently had a cash out refinance to help cover the money we put into the house along with some extra.  Our plan was live in this home indefinitely, but now we have found some other homes that were potential homes for us, as we were searching for our next rental.  This brought up all kinds of conversations about better school districts for daughter and so on, needless to say we are considering moving again, if we are allowed to do so!  I don't want to cause any issues and we will stay in the house for a year if needed.  I know I am not able to rent the home for 12 months, but is there any stipulations on selling the home?    The home was refinanced with conventional loan as primary residence.  

@Casity Kao

In my area, which is a smaller town, rent tops out at around $900-$1000. I am afraid it would be very hard to rent out higher than that. Duplexes (2 bed,1 bath) are being rented around $700. I could travel 1.5 hrs away and could rent much higher, but due to me working a full time job and taking on some of the rehab I would prefer to stay closer to home if the numbers make sense. Still might be better to keep it simple with SFR or older duplexes as I have heard from many others in the above posts.

@Mike Wood Thanks, it is good to get info on something like this.   I am looking to buy so I can at least do part of the rehab myself to cut some labor costs.  Mostly what I am looking for is very out of date homes, with few repairs.  

@Max Taylor

I was actually looking at this route as I thought it might be easier than building from the ground up.  It turns out I was probably wrong.  I might be better off to reconsider building or just stick to looking for duplexes that need rehabbed vs a conversion project.   Thanks

@Mike H. Yeah, you are probably right. It would have to be a killer deal to make sense of it, even then like you said, might be better off to just rent as SFR. Some of the properties I found were on city sewer too, but those seemed to be a little more cost. Might be one of those things that initially looked good on paper, but once you factor in all the little extras and risk might not be worth it.

@Mike Wood I am light to medium rahabber, for now anyways, so might not be a huge benefit for me.  After reading some of the comments it seems more and more that might not be a greatest route.

@Mike H.  This is actually something I have already looked at quite a bit.  Most of the older homes in the outlying areas are zoned for multi-family.  The unfortunate part is some are on septic and I would have that addition cost to account for on those, as both units have to have there own.  These houses are usually a little cheaper though and are still close enough to rent pretty well.

@Kristina Heimstaedt

That is a very good point, I never thought about the ability to put second kitchen where a second bathroom might already be.  Definitely would decrease extra plumbing required.  When running the numbers, I would add a 10% safety factor for unforeseen issues.  Should I increase that for a project like this?  Of course, I know that is a tough question based on so many variables.