All Forum Posts by: Mimi J.

Ian, I am running into the same problem as well. Am waiting to hear back from a lender regarding a construction loan. Title free and clear but net income may be insufficient.  I am actually considering establishing part-time W2 income to avoid this problem in the future.

Thanks for all of the valuable advice. I have moved forward with the construction loan. For my financial security and peace of mind, I agree this is the appropriate route to take. You guys have been great and as always I continue to learn more and more everyday about REI.

Thanks Joe 2 BR rentals avg 2000 to 2300. If I rented the main portion of the home...rent would be 3500. It's a matter of aunt bring willing to live in the basement apartment.  

Thanks Joe. The tax value is 389K. In speaking with the loan officer indicated it would roughly appraise for 440-450K as is which is conconsist with offers that are received in the mail.  After renovation would be no less than 700K...likely more as I am giving you the lower #s of comps that were pulled for current market prices.  The rehab cost will be $255K.

Thanks you Justin!

Hi everyone, I am fairly new to bigger pockets and most definitely a novice with REI. I have been so engrossed with this website and the wealth of knowledge that is freely shared. I happened to stumble across this site when searching for builders risk insurance and have been so addicted. What I didn't think was possible regarding REI is possible and even more...opportunities are not limited. It's a matter of knowing. I've read, and read, listened to a number of podcast and am affirmed each time.

In any case, I own a property free and clear with my aunt. This has been her only home and is in dire need of major renovations and I have decided to gut. Given its prime location and ability to make a 2 BR basement rental unit...this is a win win. I have met with contractors, architect and found a lender for construction loan. I was of the understanding that you could not take out a HELOC if it wasn't your primary residence. I went to the bank today for another transaction and posed the question after reading a number of post. I was informed that I could take out a HELOC and it not be my primary resident.

With the construction loan, funds are closely monitored and before a draw is released it must pass inspection and would protect me. I selected a general contractor and am very impressed with the jobs he has completed. He works with a local investor who flips properties in the DC area. My only concern with him is that he is slow to respond phone calls and I had to put my foot down. Would you advise I take out the HELOC or construction loan? I am aware that the construction loan would later be refinanced.

Thank you!

It must be initiated through the courts and the tenant must be served by the Sheriff or Marshals. I'm relatively certain all counties in MD follow similar procedures. My friend had a similar problem and had no problem evicting her tenant in Montgomery County MD. MD is so much easier to evict than DC. Hence my years of reluctance to rent my property in DC...too many horror stories. Check out this site from page 23 and search for your local county. http://montgomerycountymd.gov/dhca/resources/files/housing/landlordtenant/handbook_olta.pdf

To be a legal rental unit the basement must have two exits. At least in DC anyways. Would assume all states are the same.

From my experience in Washington DC as long as their are no siblings to contest the will which it doesn't appear to be. It simply a matter of going through the probate process and having the deed transferred to her name. In DC, the process has much improved and took 6-8 months. You can file the papers yourself.

From my experience in Washington DC as long as their are no siblings to contest the will which it doesn't appear to be. It simply a matter of going through the probate process and having the deed transferred to her name. In DC, the process has much improved and took 6-8 months.