All Forum Posts by: Kevin King

I am trying to do a value add to my house before I sell, thinking about adding a half bath and a bedroom. I want to talk to an appraiser to see if they think it would be worth it.

Anyone have any recs on a good appraiser I can consult with?

0 Votes

Los Angeles County, California

Hey guys,

I'm looking to build an ADU in the back of my primary residence in LA. I don't have any real life experience with building or developing, so excuse my lack of knowledge.

Before I build of course, I want to make sure it's worth it - I want to make sure the cash flow and equity will be worth the investment.

Should I talk to a contractor first to see what it would cost, or an appraiser to see what they would think it would add in value to the home?

And does anyone know anyone or recommend an ADU contractor or appraiser in my area (90031).

Or if there are any reliable "coaches" I can consult with on the matter.

I hope I'm asking the right questions :)

Thanks!

2 Votes

Los Angeles County, California

Hey Jared,

The dotted lines are the dining room and living room, and the main entry is on the opposite end of the home, relative to the bathroom in question, which is next to the back door.

We're trying to fit a bathroom here because it's the one part of the house that has some extra space that isn't being utilized, and yes, limiting renovation. Why is the design poor? What would be a better option?

The other option that I was thinking about, not listed in the drawings, would be to turn the W/D 180 degrees, and have it accessed from the end of the hallway. Or move the w/d to another part of the house and have the end of the hallway an entry to the bathroom.

Thanks.

0 Votes

Quote from @Stanley Mickett:

The issue with appliances outside is that they can freeze in winter. Or you will need to have the outbuilding heated unless the property is in a location that absolutely never freezes in winter. And think about plumbing lines freezing in winter. You will have to estimate the cost of construction of the outbuilding including the cost of a concrete slab, the cost of a plumber and electrician. The cost could reach $10 to $15k. This is coming from an experienced professional contractor and carpenter.

Hey Stanley,

I appreciate the response. I should have mentioned that I am in Los Angeles, and we never have to deal with that really. I grew up with washer and dryers outside and it's pretty common here. I was just planning on laying cement next to the water heater, which is also located outside, and housing it there.

0 Votes

Hey guys,

I am in discussion with an architect and debating between two proposed floor plans for adding a bathroom to my house. One floorplan involves compromising the size of one of the two bedrooms, and the other involves putting the washer and dryer outside (building a small structure around it) to save the size of the bedroom.

If anyone is interested, I attached the floor plans below. In both screenshots, the current floorplan can be seen for reference.

My goal: The main goal here is to increase the value of the home and appeal to potential renters in the future. I want to be able to get the highest amount from a renter, so it's not really about how I want it to look or what's convenient for me, but what is generally thought to be the most strategic in this context.

Thanks!

0 Votes

Thanks everyone for the replies! Very helpful. I have been calling banks from the list that @Jason Bohling provided, but I'm getting denied left and right.

Are there any banks or credit unions in socal that we know of that will offer HELOC on MFR investment properties?

Thanks again!

1 Vote

Los Angeles County, California

Quote from @Dan H.:

Quote from @Kevin King:

So, I have a duplex that has about $150,000 in equity and I am starting to think about purchasing my next investment property.

Ideally I'd take $20-$30k out with a HELOC to fund my next downpayment. I hear that getting approved for a HELOC can take some time, so my question is should I start looking now if I plan to invest in the next 6-12 months? My timeline isn't absolute, but I do want to be ready as the market seems to be shifting in our favor.

And, my duplex is in Riverside county in socal, does anyone have any recommendations on where to apply for a HELOC?

Thanks!

I am assuming you do not want to REFI due to your existing loan having lower interest rate than current rates. Normally I recommend REFI over HELOC for long term or unknown term loans, but normally the interest rates have not gone up 100%. Recognize that most HELOC are variable rate loans and the associated risk.

I assume the duplex is not owner occupied. HELOC on investment properties are much harder to obtain than they are to obtain on your home. Another BP user created this list, but I only copied the data and not the poster so can not give the person who created this list their props.

here is info on investment property HELOC providers. It is a few months out of date and was not perfectly up to date when originally posted, but is a good starting point.

AFCU does 80% LTV on NOO. Utah

Americafirst 80% LTV on noo 65% LTV Utah

Arvest Bank AR, OK, AL, MO

Bancorp South, TX Lines of Credit on free and clear houses

Bank of Southern California, CA

Bank of West (BNP Paribas) 60% LTV CA, AZ, OR

BB&T will loan on a rental portfolio

BBVA, now PNC

BECU for OR

Bellwether Community Credit Union, NH and MA 85% to 100%, draw 10 yrs

BMO Harris, 3 HELOCs to 70% LTV

Boeing Employee Credit Union

Cal Coast Credit Union, CA

Change Wholesale

Chelsea Groton Bank, CT

Citizens Bank -MN

Citizens, first position HELOC

CMG Financial 70% LTV CMG Financial in Idaho will do 100% on owner occupied.

Coastal Federal Bank of NC

Consolidated CCU, high LTV NOO LOC, OR, WA

East West Bank, up to 60% LTV with "no docs" CA, WA, NV, GA, NY, TX and MA. Super easy.

Eastern CT Savings Bank, CT

Figure 80% on a rental, not in LLC

Finance of America, 95% CLTV, second home only, 680 FICO, not TX

FirstBank CO and AZ 75% LTV

First Florida Credit Union FL

First Commonwealth

First Midwest, IL up to 90% Chicago area

First Tech Federal. OR and other Western states. Up to 80% if FICO is over 780, no appraisal under $250k value.

First Republic - CA

Fremont Bank- CA

Frost Bank - TX

Fulton Bank, PA, NJ

GFA Federal Credit Union 10 yr draw, 10 yr repay, MA, NH

Granite State CU, NH 90-100%

Great Lakes Credit Union, Chicago area IL

GTE Financial, Tampa, Sarasota area FL w 2 yrs tax history on property

Hanscom FCU, TX

HSBC 70%, for premier clients only. FL, NY, MD, CA, VA, NJ,

Horizon Bank, Kalamazoo MI

Huntington MI 75% LTV 5 yr IO product available. Someone reported 80%…need confirmation

Hurst Lending and Insurance Investment property HELOC in Texas. No seasoning. Bridge, portfolio, foreign national and other specialty loan products.

KeyBank, flexible lender, HELOCs on second

homes and rental properties. 90% LTV on primary. BLOC FL, CO, OH, UT, ID

Lafayette Ambassador Bank

Merchants Bank MN See Pavel Ushakov

Mid-Hudson Valley FCU

Mountain America CU Utah, ID, MT, NV, AZ, NM. 85% LTV, promo rate of 1.99%. Can refi an existing mortgage to a shorter term "Mini Mortgage." Currently on pause. Let me know if they start up again.

Navy Federal 80% LTV

Norway Savings Bank, Maine

Omaha Mortgage

Oregonians CU - OR

PenFed - PAUSED. Let me know if they start again. Was max 3 other properties, including primary. 80% LTV, prime + 1%, <4 properties. Pulls Equifax.

Peoples Bank of NC

PSECU up to 80%

Quorum Federal Credit Union 80% LTV, owned by LLC is OK. Very flexible lender. NY. 5 year draw, IO for 5 yrs and PI for 10 year repayment period. FICO at least 680. Not in Texas.

Quontic

Red Canoe Credit Union, WA OR

Regions

River Bank & Trust, AL

Rivermark Credit Union, OR 90% LTV

SCCU Florida 80% LTV, 2.75% first year promo, not LLC

SECU NC 65% LTV rate 2.75% Oct 2021

Signature Federal Credit Union 75% LTV (100% on primary residence), VA

Silvergate Bank, CA

Sound CU "non-owner occupied HELOC, capped at $150K and interest rates are prime + 2%, 3% or 4%, based on credit, not to exceed 70% ltv." CT

SouthEast Bank TN

Symmetry

S&T Bank, PA

TCF Bank, FL, GA

TD Bank 75% line with FICO about 740. Up to 4 properties.

Torrey Pines Bank, see also Western Alliance Bank Corp. Commercial real estate solutions for developers, home builders.

Troy Bank & Trust, AL

Trustco Bank, FL, NY, NJ, MA, VT

Trustmark Bank, TX. Call it a LOC rather than a HELOC

Union Bank, specializes in noo HELOC. KCMO, NE., MUFG.

Upstate Bank in Rochester NY, LOC up to 80%

US Bank 80%. “Business equity line of credit: Use Real Estate as Equity” up to $500k, interest only. gather your business and personal tax returns, financial statements, articles of incorporation and other legal documents.”

Vectra Bank - Colo

Veritex, TX HELOC

Webster Bank, CT

WAFD Bank. Origination fee 1% or $700. Can be in an LLC, max 75% LTV. WA, OR, UT, NV, ID, NM, AZ, TX. All-in-One construction loan, too.

WellsFargo 60% LTV Up to 5 properties.

Workers Credit Union, MA 80-100%

WSFS...up to 70% on rental

Zions Bank, Utah

NO: Truist

TEXAS https://www.cutx.org/home-equity-loans/helocs WAFD, Frost, Trustmark

High primary, not investment, HELOC:

Spring EQ 97.5% and fast, at 11 days

SMALL BALANCE HELOC ON PRIMARY

US Bank 15k to $750k 10 year draw. Requires high FICO 730 and LTV 70% or less

PenFed Best Credit Union $25 to $500k 10 yr draw. Up to 90% LTV.

Bank of America, low fee. $25k to $1 million, 10 year draw. HUGE line

PNC Bank best for small home improvements $10k up. 7 to 10 yr draw.

TD Bank from $8 k up. Can go from $25 to $500k…large line.

Frost Bank, in Texas only.

CALIFORNIA: Bank of Southern California, Bank of West (BNP Paribas), Cal Coast Credit Union, East West Bank, up to 60% LTV with "no docs" San Fran, First Republic, Fremont Bank, Golden1, HSBC, Quorum FCU, Silvergate Bank,

TEXAS

Frost Bank, East West Bank, Hanscom FCU, Trustmark Bank, Veritex, WAFD Bank

UTAH

Mountain American Credit Union and America First have great rates for HELOCs

America First will do a HELOC on an investment property in Utah.

STR DSCR Mortgages (not HELOCs)

Visio

Host Financial

American Heritage

LendingOne

RCN

Temple View Capital

Good luck

Great insight! Thank you!

0 Votes

Los Angeles County, California

So, I have a duplex that has about $150,000 in equity and I am starting to think about purchasing my next investment property.

And, my duplex is in Riverside county in socal, does anyone have any recommendations on where to apply for a HELOC?

Thanks!

5 Votes

Los Angeles County, California

Just purchased a home in the LA area and I will be living here for about a year or so before moving out and renting it to someone else. While I live here, I want to make some small renovations to increase the value of the home and to be able to charge more rent.

My question is, generally speaking where would the budget be spent the best for increasing the value of the home and increasing rent? Remodeled kitchen, convert the attic space into a bedroom / office, or adding an additional bedroom (there is plenty of room to add one decent size bedroom).

The attic space was lived in by the prior owners years ago, and finishing this conversion seems to be the easiest (DIY) and lowest hanging fruit to me, but I'm not sure.

Thanks!

0 Votes

Los Angeles County, California

All Forum Posts by: Kevin King

Kevin King has started 6 posts and replied 17 times.

Post: Looking for an appraiser in the Los Angeles Area

Post: Looking for an appraiser in the Los Angeles Area

Post: Pre ADU Questions - Talk to an appraiser or contractor first?

Post: Adding a bathroom - Put the washer/ dryer outside or compromise size of bedroom?

Post: Adding a bathroom - Put the washer/ dryer outside or compromise size of bedroom?

Post: Adding a bathroom - Put the washer/ dryer outside or compromise size of bedroom?

Post: Apply for HELOC now for future investing?

Post: Apply for HELOC now for future investing?

Post: Apply for HELOC now for future investing?

Post: Attic conversions vs adding bedroom