All Forum Posts by: Matt Koury

Thanks for the help! @Nick C. 

From what others have said on the forum here @Michael Ristom I understand that having a tenant in place during rehab is a no-no so I won't go down that route.

Thank you for your advice on partial loan payments, I'll definitely look into that. 

Like I said in the beginning of the discussion, I am a newbie looking to get into property investment so I'm trying to understand all my options when doing a deal. I have full confidence in myself to raise the funds I need for whatever way I structure a deal, so long as it is a good one.

@Nick C.

So do you cover your own expenses when you buy and hold then until the rehab and refinance is done?

@Nick C.

So in other words, I'm covering all of these expenses of the property until ive finished the rehab and have gotten it tenanted? Is there no way around that?

@Nick C. Thanks for the reply Nick! 

Will definitely look into getting a smaller lender for finance and will do my homework on that one. 

Okay, so basically I would need to either buy the home already tenanted or get a tenant in to cover most, if not all of my expenses until the home is rehabbed and refinanced? With that being said, I assume that if my rehab doesn't affect my tenant's quality of living then I can do it whilst they're occupying the property. This would be the best way to do it from a financial perspective I'm guessing if I can't find an option for immediate refinance?

@Costin I. @Nick C.

Thank you for the replies! So if I understand what you're saying Nick, you're saying that I need to rehab the place and then rent it out and after six months refinance? 

If that's the case, then if the rehab (depending on what needs doing) is to take a considerable amount of time, I'm assuming I would have to pay the mortgage payments and any others monthly expenses myself before I get a tenant in there?  

I understand what you're saying Costin, and I do think it's better to do all rehab after closing and the deal completed.

Thank you for the tips and references on how to manage repairs in relation to tax deductions. I will defitnely have a chat with a tax advisor before I do any rehab.

If my cash out refinance is not dependent on having a tenant in place (I.e. Cash flowing) then can I refinance at any time after sale?

I believe that if the property is bought for 'investment' rather than 'owner-occupation' that there may be more stringent rules with regards to refinance, but I will definitely have a chat with a lender who specializes in investment refinances.

Hi Guys

I have not yet started investing in real estate but I would like to buy my first investment property. I have attended seminars, trainings and have been doing my own due diligence. I'm starting to understand how it all works but there are still some things I'm unsure about.

Firstly, once I have bought the property, when can I start renovations on it? Is it after closing or can they be done once the property is in escrow? If it is after closing, can I still have a tenant occupying the home whilst I do renovations?

Secondly, do I have a tenant in place as soon as I have bought the property in order to cover expenses before I refinance the home? My goal would be to do a cash-out refinance to cover my down payment and the cost of the renovations ...

Any advice would be greatly appreciated!