All Forum Posts by: Justin Martin

Thanks for the help everyone! In our case, we are working with a local architect and engineer that have close relationships with the city and the area of town. Their response has been that it has the potential to be a lot more work than we think and we just can't know until we are at the permitting process. In my mind, it would be a worthwhile risk if we had plans and get them checked out by the city within our DD timeline, but we can't. I have a feeling that's asking too much though, and maybe more seasoned investors would be able to decide with the information available. 

Hey Everyone, 

During our due diligence period, we found that we will most likely need to bring up an older building to code in order to build out an existing structure to multifamily in Tampa, FL. This includes four big-ticket items:

1. Water main for the whole street needs to be upgraded 

2. The roof will need to be changed out from old wood rafters to metal

3. The first-floor elevation would need to be raised by about 6"

4. The concrete block wall would need to be filled and possibly reinforced with rebar.  

We won't know if we can get waivers for these issues until we are at the permit process, but there are interior no prints to attempt to get permits. Currently, the property has been rezoned for multifamily but there was no actual feasibility study done on the actual structure on the property, it was based on civil engineering print, population density, and square footage to approve the number of units. 

Is this amount of risk normal for commercial development? 

Thanks!

Hey All, 

I'm new to investing but I've been putting in offers on flips for the last few months with no luck. I've lowered my neighborhood search to a Class C/D Neighborhoods and a deal popped up. Here are the details:

1100 SF house with a separate metered 300 SF studio apartment

The house right beside it has been renovated as is essentially the same house that rents for $1k. I think the unit in the back is worth $550 a month. 

The property is $55k and I'll have $50k in renovations, 5k in closing and low holding costs as it will all be cash. Comps in the area say the house is worth 120-130k without the apartment in the back. 

Does that apartment add value to a home like this if I wanted to sell it when I was done rehabbing. 

I know it's not a big margin, I'm not too concerned about it, I just want to get my feet wet. 

Thanks! 

Thanks for the info @Odie Ayaga, I might just fix and flip with hard money until I have more income to show.

I'm definitely not worried about the possibility of committing fraud but I appreciate the heads up. 

@Frank Hinck @David M. Thanks for the awesome input! I see this is what people are talking about when they say find ways to implement creative financing. 

With this plan: Using hard money to renovate then going to a bank to get a traditional mortgage - How would an already renovated home affect a bank's decision when my income needs to be higher to pay the mortgage? 

Hey All, 

I'm new to investing and need a little guidance on how to get some funding for a housing hack to fix and flip in 2 years. 

Basically I have the self-employed crux - I make around 100k a year GROSS but my NET is around 30k due to a business structure of planned expenses at the end of each year and that loss going straight to my personal return. 

I am talking to a lender now but I'm not sure if I qualify for anything of value. I have excellent credit and enough money in the bank to put 20% down on a half a million-dollar home but am not sure if I can be approved for funding via the traditional means because of my income. 

I guess my question is, what options do I have? Hard money is all that I can think of but that seems to suck for a house that I plan on living in, right? 

Thank you! - Justin