All Forum Posts by: Ryan Lee

 you need to rethink where you are buying then. or move to that area. 

 Debt to income means exactly what it means how much debt you have vs how much you make. So if you make $5000 a month and your expenses (everything combined) $3500, you basically have a discretionary income of $1500.00

Most banks want to keep Debt to income 36 percent or lower. PLEASE KNOW EVERYTHING VARIES, DIFFER FROM BANK TO BANK.

If your rental income is at least covering your expenses (mortgage taxes, ins etc) its almost as if it doesn't count against you. Some cases it may help others it might hurt. really boils down to your debt to income ratio (DTI)

 interested 

 You're going to save yourself thousands of dollars since you know how to perform the a 3rd or more of a rehab.

@Tj M.

Yes, unless you don’t care if it burns down and possibly someone dying. My conscience couldn’t do that, unless you let the buyers know this is knob and tube and should be replace immediately.

So I came across a deal recently. 
Homeowner is selling his home (no longer lives there) with additional 10 lots (sub divided) all basically on the same land. Home owner had bought the surrounding land for privacy many many years ago. Now he wants to sell it since he is up in age.  

Total sale price $250k.

Main property 1500 sq

3-4 bedroom with 1 1/2 bath

1 lot is 60 x 100

9 other lots are 40 x 100

Homes have recently sold in the area for 230k-275k (original homes, the usual interior updates)

I want to purchase the property and build homes on each lot. lots are zoned for residential single family.  

Here are my questions.

1. Would the bank approve a loan for this type of deal (main property + 10 lots) ?

2. Pros and Cons?

3. How do I afford this deal and build homes on each lot?

4. Can you provide a estimated due diligence check (things to look out for)?

@George Yu

Congratulations, I am thinking of building my first house. This definitely just motivated me.

@Jay Hinrichs @David Edwards @Eric Teran @Nicholas Lohr that's a WEALTH of information, thank you so much. I had a friend that built a modular home but things didnt go as plan. The project completed but over budget and some other details. He didnt have the specifics on what to do because he was doing things as he goes. 

I was thinking about going buying the stock plans.

Pros or Cons of Modular vs Site build? Looking for the easier option in doing my first build. Then after I do this one I can attack and build using the other option. 

Hey Everyone,

I am looking for steps on how to build a house from scratch on a lot. house was previously burned down, all that is remaining is the foundation.

I know some of the steps, but can someone help me from A-Z? I know I need a surveyor, architect, etc. A template would be great to follow. 

I know everyone will provide pro's and con's but I am just looking on some guidance and encouragement since this will be my first build from the ground up.