All Forum Posts by: Laura Baugh Finley

We completed a 203k loan a couple of years ago. There are two types. The streamlined loan is 35k max. The other will loan up to 110% ARV. The normal 203k requires more documentation, appraisals, and inspections. Also, the 110% ARV loan requires almost everything to be completed by a contractor. The streamline loan allows much more ability for sweat equity. It depends how much money you need and what labor you want to provide.

We did 50% down on the 110% ARV loan. Our rehab portion was about 120k (we are are in a high labor cost market) and nearly everything was completed by contractors. This rehab portion was for some big ticket items; siding, plumbing, electrical, flooring, some walls, etc. This was a pretty distressed property from the 1920's. We later upgraded some finishes ourselves in order to avoid paying contractors (kitchen backsplash, open shelves, etc).

Feel free to pm me with questions on the process. We were pretty much the first 203k loan for everyone we worked with. Many realtors we know with 20+ years experience have never worked one. If you do it, educate yourself, you will need to be the expert. 

Thank you all for your responses!  There is so much to learn.  I so appreciate you all taking the time to share your experiences and guidance.

Hi!

First, thanks for reading this post. 

We are looking to get out of our current market by selling and moving to a new location. In part to find a better market for our finances and in part to travel and explore somewhere new. 

Currently, in Snohomish County (north of Seattle). We would be getting about 200k in equity and would use up to half for BRRR or flip. We are looking for SFH up to 4 plex. We will not have income sufficient for bank financing. The 100k capital needs to fund the full project.

A bit about us: We have purchased 2 homes throughout our lives (early 30's). Our first was a foreclosure and our most recent was a 203k rehab (type of loan). I also help my family with a 10 unit commercial business (leases, bookkeeping, etc.). We are still newbies but feel these experiences have given us some insight into rentals, remodels, and financing. My husband has worked in positions that require him to be handy and mechanically inclined. Therefore, we will save on some basic remodeling/maintenance. 

We have identified the midwest as an area we are most interested in exploring. 

- Grand Rapids, MI

- Des Moines, IA

- Omaha, NE

- Columbus, OH

- Rochester, MN/Dubuque, IA/Driftless Area WI 

A few questions: 

Are there any red flags with these regions? 

Is it a mistake to consider the rural areas that are tied to these metros? 

We have been looking on craigslist and on county/city auction lists. Of course we see some on zillow, but nearly all of these properties are priced for retail. We skim Facebook Marketplace (the functionality is rough). Are there any other places we should be looking? 

All feedback is appreciated!

Hi All,

This is my first post. My husband and I began looking at multifamily here in Seattle but its just to rich for us. We are looking to move to the Midwest (around Madison, WI or Minneapolis, MN). We would like to live in a unit for a year or so as we get more acquainted with the surrounding area.  We prefer small town - but are not limiting our investment to that. We have never been landlords. Mainly looking for a 3/4 plex. However, recently I found a 5 unit that is very appealing, but understand that changes the funding options. Any recommendations on financing?  As we want to live in it, does that rule out portfolio loans? Will anyone look at the rental income as 'income' even at 50-60% without experience? I read somewhere that in some cases if you have enough savings on hand (6 months of expenses) income becomes less of an issue, any truth to that?

We are looking for house hacking and long term passive income. Also I am much more comfortable buying a multifamily vs SFH. In the event that we go back to Seattle, we wanted a multifamily investment property either way.