All Forum Posts by: Maria Vogel

@J Scott I recently purchased a house and I put 20% down and another $5k in renovations. with equity, I have about $50k tied up in that house. I have talked to a few bankers who said I could have trouble getting it to appraise for enough since I haven't owned it for over a year and it just had an appraisal and another banker said cash out loans are not typically great loans and I won't get enough cash out to make the closing cost and increase in interest worth it. Even though I have $50k in equity cash out loans typically only provide 70% LTV so refinancing with one will not give me much of my $50k and will just increase costs with closing and interest rate increases.

Another concern: My mom did a flip and the appraiser refused to appraise for much more than the original purchase price despite renovations because he had just done an appraisal 3 months earlier. We had a similar experience with our primary residence. We did a $60k remodel and when we refinanced it 1 year later he only increased the value by a small amount because the square footage didn't change. I was told they don't really look at the finishes when appraising-he compared our home to homes that were not remodeled and were much smaller and some were not even in the same area. Unfortunately, in both of these cases the repeat appraisal was done by the same appraiser that did the first one-this may be the problem but you can't choose your appraiser. But this is a concern-it would be nice to avoid that first appraisal. 

I might have found a solution for my problem though! I just talked to the sellers and they may be willing to owner finance! I don't know why I didn't think to ask this before!! 

@Natasha Quiles what do you mean by private lenders? I could definitely go to a bank and get conventional financing. However, once I do that then I have to deal with an repeat appraisal when we sell it etc. 

I have been unsuccessful at finding any partners or even any investors. Most of the people I know that have the money and are interested in Real estate already have their money tied up or have too much going on. I have been talking to friends, family and coworkers etc about investing and so far have been unsuccessful in finding any partner or investors. 

I just sold a house and I want to do a flip to increase my cashflow so I can get into multi-family. 

I made about $40K on the sale of the home. 

Background on the market: Most houses here under $200k on the MLS are under contract within days (sometimes before they are even doing showings). Even total dumps are selling quickly if they're priced around $150k.

I found a FSBO 2 bedroom with a HUGE heated shop (very big selling point in this area) similar homes that are on the MLS like this are selling for between $140-160k without any reno. This house would be a big reno but nothing major. The roof, siding, heat system foundation are all good.

It needs a new bathroom, new kitchen, doors, lighting new flooring and paint. Maybe a new fence. It has a really cute yard. I estimate about $10k in supplies $15-20k if we hire people instead of doing the work ourselves (we've done quite a bit of this ourselves but I want a quick flip so would probably hire out the work). 

Asking price is $110k however, the owner is a nice gentleman that owns the house clear and free and says he knows it needs more work than he realized (renters just moved out) and is willing to negotiate. He could easily get that or more if he puts it on the MLS.

I'm thinking of offering him $95k cash. However in order to come up with the cash I have to tap out all my resources. 

$40k cash from sale of the house

$30k personal loan at 11% interest 

$21K HELOC at 3.5% interest

$4k personal savings. 

Total $95k 

Reno credit card with a 17k limit 0% interest for 18 months with a 2% transaction fee. 

Is this smart? I feel I can sell this house for MINIMUM $150k after the reno. I figured it out and I stand to make a MINIMUM of $20k even with unexpected costs and holding costs (taxes insurance and payments) and I feel it will sell quickly. Is this smart to tap out and use my finances in this way? I have a few other investors here telling me its a bad idea, too risky but they all have cash so they don't have to do this. 

Other ideas? My back up plan is, I can always go to the bank and pull out a loan or a HELOC on the house after I have purchased it with cash. I was able to get a HELOC on the house I just sold because I had purchased it with cash.

Please! Any advice is appreciated!! 

I had a great deal with Charter One who now became Citizens bank. I know things have changed since I got mine but they were offering great deals when I got mine almost 8 years ago. I need to look into refinancing it now. 

I currently own 3 rentals. One is supposed to close this week it is in a nearby town and I want to re-invest in my town. (Better rental market) I will end up with about $40k cash when this closes. I have access to about $50k more from HELOC's and personal loans but not a great long-term solution.

I have been looking at my options and would really like to get into multi-family. I need advice! 

Here is my situation: 

Rental A) newer home purchased new. 4 bedroom 2100 sq foot rents for $1500/mo high demand for this area and this type of rental. Owe $183k worth about $220k. Monthly profit about $500/mo. 

Rental B) Older home just purchased July 2015. 3 bedroom (4th bedroom in the basement without egress-can increase the value by making this egress) Rents for $1150/mo could increase rent but I have good renters in there. Owe $105K worth about $160k. I put $35k down for the downpayment and reno so there's a lot of equity tied up in this house. Monthly profit about $400/mo. 

The rental market is hopping here. I would like to build a few townhouse-they do very well both as rentals and for resale. I know an investor here who made a lot of money building/renting and selling townhouses and have spoken to another one who also says multi-family is the way to go. I just need to figure out how to get into them! 

 Older small townhouses with low rent are selling for a lot of money-must more than they are worth and the profit would not be there. Newer townhouses are renting and selling for even more. I just found a great deal on lots where I could build 12 units. For 2 townhouse lots (4 units) for $115k-there are 6 lots available. This is an unbelievable deal. Utilities are already there and its in a great location-I can't believe they haven't been purchased yet! I just don't have the cash to pull this off-I could possibly pull off one townhouse lot with the cash I have. I have resources for building supplies cheap-we can contract ourselves or there's a few great contractors-I don't have the numbers yet on how much it will cost to build them.

I need to figure out how to find investors or more cash. 

Does anyone have ideas or advice for me or is this a pipe dream?

Thank you, 

Maria 

@Grant Boynton Did you figure out how to do this? I have a big deal here in Kalispell I'd like to figure out--but like you--I need more money. I have about $60k in cash and about $30k more I can pull from a HELOC. I found a great deal on townhouse lots and I want to build a few townhouses. It will take more money to do that though. I need a partner or an investor willing to lend me some money! Let me know if you found any great ideas!

@Casey Cotter I am an invester in Kalispell. I currently own 3 rental home and am interested in getting into multi family. I would love to connect with other Montana investors. I haven't been able to find any clubs or groups to attend around here. Do you know of any? 

Hello @Tyne Flannigan and other Fellow Montanians!  I'm an investor in Kalispell, I currently own 3 single family rentals that do well. I am currently looking to buy some town house lots but I need partners/investors to fund the whole deal. I'd love to connect and find out what resources you may have or interest in investing in my venture.

I am from Kalispell. I currently own one house in Butte that I flipped and rented. It should close this week. I have 2 houses in Kalispell that make great money but I'm interested in moving to more multi-family. I am trying to figure out how to do that with the profit from the Butte house. I would love ideas or a partner. I found a great deal here for townhouse lots but I think I need help with financing or a partner. I'd love to get together with more Montana investors and get ideas!