All Forum Posts by: Lamont Chen

@Deepak Bhosale

You can look at it from 3 angles:

1. Build detached ADU (if zoning allows) with permits 200k. Appraises for +50k and rents for #X

2. Expand existing home (if zoning allows) with permits for $#, Appraises for $#K, refinance?, and since you are living in it $0 rent.

3. Spend the $200k to buy another investment or multiple.

@Shayla Collins

I'm working on a new construction at the moment in NJ and there are a good amount of new challenges I have run into:

1. Zoning - Ensuring what you are trying to build is compliant with the zoning for the lot. With my other property which was to renovate and rent out I did not really have to worry about this. Typically your realtor should know the zoning for the town or can connect you with an architect who is familiar with what can be done without a variance which is a toss up.

2. Demolition - If you bought a plot of land you do not really need to worry but if there is an existing structure... disconnecting water, electric, and gas from the service providers takes a while and requires permits from town. You would also have to consider demolition costs into your numbers.

3. Loans - You can check with a local loan provider but a construction loan would be different and I believe higher interest than a renovation loan. If you buy the property with a mortgage then getting a construction loan on top would require additional assessment.

4. Build - Similar to large renovations you want to choose a reputable builder which may be difficult. Depending on the area you are in you are in there may be challenges to building when the ground is frozen w.r.t. the foundation.

Good luck!

@Whitney Robert Caldwell

Lots of books from the post below. Have fun learning!

https://www.biggerpockets.com/...

@Sean Ezeamama

A large part of the BRRRR strategy is that by buying distressed properties, fixing them up, renting, and refinancing you essentially pull out all (or most) of your initial invest and have an opportunity to cash flow as well with the deal.

When purchasing new construction you are putting your money into a property but may not be as lucrative vs BRRRR. However buying distressed properties and fixing it up may not be everyone's cup of tea and some do prefer turnkey properties which they rent out to tenants for equity paydown, tax depreciation, appreciation, etc.

Many ways to make money in this business but you have a good mindset.

Where are these properties located if you do not mind me asking? I would not mind taking a peek to see what that area is all about.

@Ryan Solomon Check out the below from one of the members from BP. Enjoy!

@Teresa Parra

Couple of my friends have used Rocket Mortgage and have gotten pretty good rates. If someone on BP has other suggestions it does not hurt to shop around.

Good luck!

@Bao-Chau Tran

Congratz on the purchase. Since it is a vacation home you should be able to rent it essentially for less than 180 days out of the year. Please double check the zoning for the town you purchase to home to see if short term rentals are allowed. I found the below article for second/vacation homes. You can double check with your lender but good for you to be on the cautious side.

Good luck!

https://www.rocketmortgage.com...

@Aaron Macken

If you are working with a local agent you can take a look at homes recently sold in the past 30-90 days. The spring and summer surge should have posted what the sales price wound up being as compared to list price. From there you can see what the active listings should sell at or around.

From there if the numbers make sense for you then you can try to put an offer in.

Good luck!

@Tom Wagner

Nice!! This is what its all about. Good luck with the deal. If you need help with any loan officers, contactors, etc. feel free to reach out since I am pretty close.

@Wayne Brooks Oh I misread that point from the original post about not having lived there for 2 years. Thanks for the clarification.