All Forum Posts by: Luke Councell

Hello friends,

Inspection went well. Nothing we didn't know. A little asbestos tile in the shed and porch, and lead paint. Definitely needs a new roof. 

Unfortunately, I am kind of a dumbass and didn't realize that a conventional loan has to be the purchase price, something my realtor missed :/ I was under the impression that a 203(k) vs conventional with borrowing for rehab would be like the difference between a 3.5% down Conventional, and an FHA. Turns out you cannot do that. @Joe Norman and @ Paul Weldon were right on the money.

So with that in mind, I am exploring 203(k) options and possibly conventional and just a personal loan for the rehab. 

I am having an inspection done tomorrow, $450. We are waiving the asbestos ($200), (possible asbestos containing vinyl in kitchen, which we will either cover up with vinyl plank, or remediate once we actually own the house, and lead ($300). Again, as this can be mitigated instead of abated, we are waiving until we actually own the house. I'm not paying an additional $500 on a house that we may not even obtain.

Foundation and structural beams look good. No wear to speak of visually. Likely will need an all new roof, and possibly struts, rafters, etc. Ceiling is a definite. 

Has an 800-gallon holding tank, will need septic install. Soil is in restricted soil area (perc test will be available in Feb in our area).

Keeping in mind this is a 1/2 acre plot with 1/4 acre plot across the street, 5-6 outbuildings (chicken coop, outhouse, garage, ~100 sq ft shed w/ electric, cinderblock smokehouse, fire pit, and other shed). We have enough room for our hobbies and pets, gardens, and is only 20 minutes from Liberty Mountain (possible short-term rental opportunity, but we also ski so passive bonus). We feel having a $1200 mortgage (currently $600 less than what we currently pay), building equity, possible rental opportunities, room for hobbies and pets, and the knowledge gained by this project may be worth the risk as long as we can accommodate the major repairs (roof, septic). 

Any advice on a septic/alternative septic install on a small <1000 sq ft home for 2 people, as well as re-tophousing a tin-roof? I say top housing because the roof isnt what needs replacing. We'll need a whole new top of house (~500 sq ft?).

I have purchased the book y'all recommended. I can definitely see the value in spending $25 for some knowledge that will obviously save me more than that in the long run. Paying for quality is part of the strategy. Will report back after inspection. 

Hello,

Long-time lurker looking for some advice on purchasing an older home in NW Maryland (cheaper than most places in MD) and estimating repairs on it. I will be looking at the home today, and I'm not quite sure how to estimate repairs. This home will be primarily purchased as a place to live, but secondarily as an investment learning opportunity. We are tired of renting and want to learn all the things that come with buying, owing, and then renting/selling a home. Therefore, our target investment goals are a bit different than a typical BRRRRR or Flipper.

The home is an old, 1890s Cape Cod with a tin roof and just under 1000 sq ft. Just from the pictures I can see some floor issues and ceiling/roof issues. Could be cosmetic, could be a deal-breaker. The home will need mainly paint and cosmetic touch-ups that me and my partner will be doing together, but it's the big ticket items that I need to budget for. 

House is priced for 160k, I've been preapproved for 300k but the actual lending amount is the reason I'm here. How much more over the 160k should I be expecting to borrow for the rehabs? Initial thoughts had me at 200k so I'll have 40k for repairs, but then a friend told me her bathroom required 10k in repairs, all through a contractor though. 

In buying this home we hope to gain some knowledge of benchmarks like, how much exactly does it take to repair a bathroom, bedroom, kitchen, roof? We hope the smaller square footage will allow us to remodel with not rental quality materials, but not top-of-the-line/high-end either. We just want a nice home to live in for a couple years while we learn how to fix things up and what the time/costs are. 

If anyone has some comps (i.e. "it took us 5k to remodel our 50 sq ft bathroom in Minnesota" or whatever.) on what I can expect for an older, smaller single-family home, in a cheaper area of an expensive state, that would be much appreciated.

Hey Everybody,

I am a first time homebuyer looking to play the long game in REI by utilizing my first home purchase as an owner-occupied househack. I'm currently targeting ~$350,000 3-4 Bed townhomes in the Frederick, MD area, ideally with a 3.5% ($12,500) down-payment. I've read most of the books that I could get my hands on, including BRRRR, Investing with Little or No Money Down, and a number of other investing and real estate books.

My current rental lease ends in November, and I am trying to time my purchase more or less so I have a smooth transition from renting to owning, to becoming a landlord myself. It is currently the beginning of February, and so I am wondering from anyone who has some knowledge and experience on buying homes, what are the steps and timeline I should expect in order to make this dream happen?

• I have already started to look into lenders. Found one who offers 3.5% down but the offer is only good for 90 days. Held off because that would put me at purchasing in April.
• I am looking into small renovation deals and new construction, although I understand Maryland has some tax benefits that do not apply to new construction. Additionally, the difference between those two choices are likely to have a very different timeline to being able to move in. Does anyone have experience with purchasing a new construction and waiting for it to be built?

Little things like this are the nitty gritty of why everyone doesn't do REI, and I would like to start learning as much as I can past the basics found in books, podcasts, and online.