All Forum Posts by: Kieran Dowling

Yeah, you can totally be your own GC for a Homestyle loan! It can be a smart move if you're handy and want to save some cash.

Just make sure you're up for the job and can handle the stress of managing everything. Plus, it could take more time than you think, so plan accordingly.

Quote from @Kieran Dowling:

Ok. So you 'know how' to do a bath remodel for instance. Have you done enough of them to deal with the City Building Inspector and pass the inspections? Are you pretty familiar with current 2021 IRC Code? Tell me how many inspections are required for a typical bathroom reno......

I'm not giving you a hard time, just asking the hard questions. Before you go this route be 100% sure that you will actually save money. Because time is money and if you waste time on a job, you lose...it doesn't hurt as much but it comes out of your bottom line just the same.

The truth is...most homeowner/investors think they know what they're doing but they really are clueless. And it costs them so much that they never really understand, time/money/sleepless nights/angst. So unless you are really good (and you may be, I don't know), just let the real Contractors handle it while you go find another property.....

No need to guess fnma makes guidelines available to everyone. 

https://selling-guide.fanniemae.com/Selling-Guide/Originatio...

Do It Yourself” Option

The “Do It Yourself” option is available for renovations made to one-unit properties by the borrower. This option is not available for manufactured homes. “Do It Yourself” renovations may not represent more than 10% of the “as completed” value of the property. The lender must review and approve the renovations in advance, and must inspect the completion of all items that cost more than $5,000.

A borrower may request reimbursement for their payments for the cost of materials or for the cost of properly documented contract labor, but not for the cost of their sweat equity (labor). When a borrower chooses this option, the lender must fully budget for the cost of labor and materials related to the renovation so that, should the borrower be unable to complete the work, a contractor can be hired to finish any of the “Do It Yourself” repairs.

So  the “do-it-Yourself” option is only allowed on a one unit property and not a  duplex?

Quote from @Kieran Dowling:

Quote from @Bruce Woodruff:

What @Chris Seveney said. Also note that most states will not allow you to GC (or go Owner/Builder) on an investment property, only on your primary residence.

@Bruce Woodruff

 This will be for my primary residence. Will it be allowed?

Well, the lender will still not allow it, but if it is your primary, then yes, you can act as a GC (called Owner/Builder). But be aware that you need to act as a GC in all ways. You need Liability Insurance and Worker's Comp. If you use all Subs it is easier but most people will end up hiring a handyman or neighbor kid to do something...they need to be covered under your Workers Comp policy. These are expensive and you will probably not end up saving money over just hiring a real GC. Plus the liability. Plus the fact that you know zero about running a construction project. I'm not sure why you would want to do this...can you explain?

What @Chris Seveney said. Also note that most states will not allow you to GC (or go Owner/Builder) on an investment property, only on your primary residence.

@Kieran Dowling. Here's a list of metrics to use as a gauge:

1.  Days on market trends. Is it taking longer to rent out houses now than previously?

2.  Absorbtion rates.  How many active listings versus how many rented last month.  This will tell you how many months of supply there is in the market currently.

3.  Prices.  Are they going up or down?

Some markets have seasonality to factor into the indicators above.