All Forum Posts by: Justin Pumpr

Hey all. Thanks for the replies. I had one more thought and would love some input. What if in the upstairs unit only, I put French doors that going from the living area into the back bedroom? That way you'd get the light, but it could also be used as a bedroom with curtains behind the doors for at night. I'm trying to think of who would buy a 2/1 duplex and I can only think of two options:

1) would likely be a couple who would live upstairs and rent out downstairs in which the back room wouldn't really get much use as a bedroom, so the room could be used as a guest room, but it could also be an office area that opens up onto the balcony.

2) The other potential buyer would be an investor who wants to rent out both units. In this case a true 2/1 would probably be better, but would the French doors make that less enticing as a rental, as I expect it would likely be rented to a couple, or a very small family who wouldn't need as much privacy.

Thoughts?

@Jo-Ann Lapin There's such a mix of properties in the area there isn't really a "normal". It literally goes from 1 bed to 6 bed all within a few block.

@Frank Wong That was the idea! I'm trying to make it as nice as possible, but with the rental market in mind.

FYI, I wasn't considering making it a 1/2, but I was considering it being a large 1/1. It looks like I'll have to find some other way to get natural light into the living space then!

Cheers for all the input :)

Hi all,

Posting this again with the floorplan to try and get some insight from investors and realtors. The question, do I keep the "master" bedroom, or do I remove it and open up the living area? The main reason for wanting to make it a 1 bed is because there is almost no natural light in the living space at the minute.The windows on the non-bedroom walls are so close to the neighbours property that they hardly let in any light at all. If I make it a 1 bed, the light from the patio door at the back would flood the place and allow a nice entertaining area.

Thoughts?

Hi all,

Im about to close on my first flip property and am trying to decide between converting the property into a true 2 bed 1 bath, or keeping the property as a 1 bed 1 bath, but opening up the walls to have a large open plan living space. 

Tbe property is a duplex with ~800sq ft in each unit. No room to add extra sq footage. I know for a rental property a 2 bed 1 bath would demand higher income, but as a flip for a new investor to purchase, or somebody to house hack, which would be more desirable? 

if I keep it as 2 beds then the kitchen and living area would be pretty small, but if I removed a bedroom I could open up the whole front area and have a really nice and welcoming living space with a decent sized bedroom at the back. The layout in each unit would be indentical.

Any input would be greatly appreciated!

Hi all,

I'm looking for a contractor in San Antonio, Texas that has experience working with out of state investors, as I'm in California. If anybody knows of a contractor in that area, or close by in TX that would be great.

Cheers!

Thanks @Katie P. Patch of Land will lend 80% of purchase and 100% of renovation. Not terrible, but still a really big outlay for Bay Area properties (~$100k). I'm yet to here back from Fix n Flip.

@Stephanie P.

@Stephanie P. I gave that number a call, but Temple only lend to LLCs, or entities which I'm not looking to do at this time.

It seems everybody wants experience, but to get experience you need the finances in place. It's a big catch 22!

@Reginald Truss I don't have a specific property at this time, but I'm looking for a lender, so I'm ready when the time comes. That said here are the likely details:

Location: Oakland area

Money needed: ~$600-$650,000

Down payment: 15%

Property Type: Likely SFR

Cheers

Hi,

I'm looking for a hard/private money lender in California that can lend above 75% of ARV. I'm ideally looking for something closer to 85%, as everything in CA is incredibly expensive!

Thanks,

Justin

It's a 100% loan combo of hard money and heloc, yeah.  The $8695 is estimated closing costs (points, origination fees, title, escrow) for the initial hard money portion. You may be right on the refi cash to close. It'll likely be closer to $6k taking into account everything which means my cash to close and cash on cash is lower, but my biggest sticking point is the potential discrepancy in rental income. Is it all too close to call?

Hi all,

I'm considering purchasing a 4-plex, but when I'm running the numbers I'm getting some pretty different outputs based on worst and best case scenarios. This mainly comes down to the rental income. On the conservative side I'm looking at negative cash flow, but on the higher end I'm looking at ~$600/month cash flow (based on converting the 2x 1-bed units to 2-bed units. The high end rental income is definitely do-able and not very far fetched (it's possible it could be even higher), but there's no real way of knowing which way it would skew. Does anybody have any recommendations about this deal? I've attached my numbers in this link: 4-plex Analysis

To finance this deal I'd take a hard money loan for the purchase and use a HELOC for renovations and carry + closing costs and then cash out refi into a traditional. As the cash out is only 70% of the ARV, I'd need about $40k out of pocket at the end of the deal to close everything out.

I'd love to hear any thoughts on this!