All Forum Posts by: Kareem Arnold

Hello All,

I bought a home in Hawthorne, CA roughly 7 months ago for $504 k, all cash. The place was a project and had to be renovated. Last month I cashed out to pay back my investors and got a 30-year mortgage with a bank. During the process of getting a mortgage, the bank appraised it for $675 k. The mortgage right now is around $3000 monthly, I'm house hacking and currently renting out 2 rooms for $ 1k each.

Would it be a good idea to use the equity now built into the home to purchase an investment property? If so what steps should I take next?

Thank you for your time

@Alfred Edmonds  We did not pull any permits, I was told by several contractors that it would take 1-2 months and extra funds to get the permits and everything up to code. We do not plan on selling the property anytime soon but we will surely need to refinance the property as soon as it is rehabbed. Thank you for the advice, hoping for a smooth appraisal.

Hello,

I recently purchased a single-family home in Hawthorne California, all cash for 500k using a hard money lender. The property was in bad shape and I'm using another lender to provide the repair cost of 50k. The home was initially a 3 bedroom 1 bath with a massive unpermitted enclosed den attached. I started the repairs and remodel yesterday and the plan is to turn 1 of the bedrooms into a 2nd bathroom and use the den as a master bedroom for myself. Repairs will be finished in two months after which I plan to house hack the property, the two permitted rooms will be rented out.

In order to pay the hard money lenders back, I will need to refinance the property. Will the fact that I have an unpermitted bathroom and bedroom massively nose dive my appraisal value? What is the impact of unpermitted rooms on the value if any?

Hi All,

I'm a new member here on Bigger Pockets, my question or scenario is - You are trying to buy a home and get approved for a 200K loan. But the seller agrees to sell the home for 150K. Does the bank still give the full amount that will then allow you to use the extra 50K to renovate the home? 

Thanks in advance