Hello everyone:
First of all this site is awesome. I found it a couple of days ago and have spent hours reading it. The knowledge here is a little overwhelming for someone like me who is new to REI. With that said, I have some questions and looking for some advice from some of the members here, if possible.
I purchased a home in July 2014, in Chattanooga, TN and have been living in the property (owner-occupied) since then, but due to changes in my personal life, I am looking to rehab the property and flip it, but kind of need some advice. Here are some numbers for you all:
Purchase price: 78,001
Principal Balance: 72800.18 @ 4.25%- 30 yr Conventional loan through BBT; The home was a foreclosure, but purchased the home from HUD through an online auction, and paid 5% down for Conventional loan with PMI.
Monthly payment: 628.16
Home owners insurance: 1034.68 (Allstate- Estimated cost to rebuild is 166,851)
Current Property Assessment from County: 97,100 for building and 26,900 for land: Total- 124,000
Zestimate (if this means anything): 123,382
Square footage: 2020 with 1526 containing HVAC (Electric) and a converted garage into a carpeted room with window AC, 2 old wall heaters, washer/dryer/water heater, outside door around 494 sq ft. This side room could be turned into a master suite.
Lot: 0.35 acres
Built: 1953
You could consider the home one of 2 ways: either 2BR with 1 bath and office or 3 BR with 1 bath.
Here is a description for the home: Charming rancher in convenient area. Located in a great neighborhood, formal DR, family room, built-in shelving, laundry closet & lrg eat-in kitchen w/ plenty of cabinet space.
The home was once a rental, then individual family purchased it, they were foreclosed on, and the home sat empty for over 1 year.
I have made some modifications to the home since I purchased with the help of family: installed 2 new ceiling fans in the bedrooms, replaced 2 interior door knobs, replaced all outlets with 3 prong grounded, rewired the living room and hung double ceiling fans as there was not lighting other than lamp plugged into outlet, painted the dining room and kitchen, installed a dish washer, some small landscaping projects around the home, had ancient HVAC system serviced, but much more needs to be done. Spent around $2000 on all this.
Most of the projects that need to be completed are above what I can do personally and would need to contract out- kitchen/bath needs updated, ceilings have some cracks along the joints in the sheetrock, you could turn the outside room into a master suite, replace carpet with new carpet or other type of flooring, new gutters/downspouts/faciaboard (sp?), a couple of red bricks are cracking on the front steps, some stumps in the front yard need to be removed from where they fell over from storms, HVAC unit is very old and needs replaced, and retaining wall around back of home has a couple of spots where it is cracking/eroding at the bottom.
The questions I have are what are the next steps that I need to take to get financing/start the process of rehabbing the home?
1.) Refinance in FHA 203K, look for other financing options, etc?
2.) Getting quotes on the work that needs to be done?
3.) If I am able to secure financing, how do I make sure that I am would be able to turn a profit once the renovations are complete? How to I make sure that I do not overspend?
Also, my end goal would be to take the money from this project and roll it into another remodel.
If you see anything that I am missing, any questions that I am not asking (which I know there are), or have any advice at all, that would be greatly appreciated.
There are pictures of the property still on the Zillow listing for it. Not sure if I can or should post that link here. If you would like to see to have a better understanding of what I am dealing them, let me know. Thanks in advance.
