All Forum Posts by: Matthew Porcaro

@Dean R.

Congratulations! That’s such an amazing achievement.

 My main advice is get a lender who specifically specializes in 203k loans. If you do that, the rest of the steps will fall into place. They will get you a contractor, and make sure your loan goes through easily. 

What market are you buying in? I could make some suggestions. 

You just need to be patient. Put alerts on your email with your realtor for any 2-4 plex that comes on the market. 

Do the same for any websites you can subscribe to (foreclosure.com, homepath, etc)

I'd go HELOC - you have plenty of equity in the property.

Go visit some local credit unions in SLC, see what they're offering on HELOCs. Some will offer up to 90% LTV, compared to the big banks.

This way, you only pay on what you use, that the rates are still low (5-6%)

203k loan was the best thing I ever did. 

I found a foreclosed duplex, and bought it for $270,000 - adding $80,000 to it to rehab it (It was in complete disrepair)

After 8 months, we finally finished the rehab, and it re-appraised for $480,000. After that, I immediately refinanced out to get rid of the MIP.

Shortly after that, I got engaged and moved in with my fiancee, and now I rent out both units in that duplex. I get $2,000/mo in positive cash flow on it, and Now have about $130,000 of equity that I use via HELOC's to buy more properties.

Renovation loans are excellent financial decisions for your primary residence, or in the least to start your real estate buying journey. 

No affect. 

When I did my 203k, I bought the property for $270,000, and put $80,000 into it on the rehab. Total 203k loan was $350,000. 

8 months later after the rehab was finally finished, I got a new appraiser to come in and it appraised for $480,000. That was more than enough for me to refinance into a conventional loan and get rid of the mortgage insurance. 

Typically, you would be going to another bank anyway. They don't care what loan you're in, just how much equity you have in the property. 

 Start saving. Going for the bare-minimum of everything is always grounds for disaster. 

If you want to use a 203k, you need to move into the new house. Maybe look for deals very close to where you live now. You can go from an FHA to another FHA.

 Great strategy going for the 203k. Exactly how I got started!

Be sure to find EXPERIENCED lenders that have done TONS of 203k's before. Otherwise, you're in for a rough time. I'll never make that mistake again =)

Find a credit repair company! They do all the work for you. It costs a few hundred dollars, but it's well worth it. 

 Ugh! Oh no! that's really not good. Yeah, if contractors "run out of funds" that means they're not using what you're paying them for the job. They're paying for personal stuff. Not good!

You can also check out 203kcontractors.com 

The guy Paul who started the site is a great guy that qualifies all the contractors before they are allowed to be up on the site. These are all companies that are going to be plenty comfortable with the process and will help you get it done. 

Best of luck!