All Forum Posts by: Nicholas W.

Thanks again for all the kind words! I think I've responded to them all but I apologize if I missed any questions.

Seeing as how this thread has really gained some traction and everyone loves pictures I thought I'd share a few more:

During:

The Superviser:

After:

Give them the notice, per local law. Explain that the reason you must give them the notice is that if you don't treat every tenant exactly the same and the way your lease stipulates then you open yourself up to discrimination law suits in the future. Then it's not your fault they are getting the notice, it's just the law.

@Michael Gutierrez, @Jesse Carter

In the summer of 2016 I did a cash out refinance on my primary residence that I had done a similar renovation on that yielded $53k. I used $36k of it on my first rental down payment (which required just $4k work), so I still had $13k from that and I've saved all the cashflow from that rental. I did pull $8k out of a RothIRA that I've had. My wife and I have always lived well below our means and was able to add about $30k from the cashflow from my day job since deciding to invest in mid 2016. It's never easy coming up with the down payment, but the more you learn the more strategies you come across. Just find a way to get started and you'll be surprised by the doors that open up.

Well you entered in that the house cost is $45k and with a loan of $82,300, leaving a surplus of $37,300. Since your rehab is to cost $55k and your closing costs are $2,300 you need $20k to make the deal work.

$45k+$55k+$2,300=$82,300+$20k

The 75% is a Fannie/Freddie maximum on refi's for a single family, if I'm not mistaken it is 70% for 2-4 family's.

Derek, I used Commerce State Bank for the purchase and The Equitable Bank for the refinance. The only reason I changed was because my mortgage lender changed banks and my loyalties lie with her and not the bank itself.

Thanks for the compliments Jason. I'd estimate an additional $8-10k if everything was contracted out.

Thanks Naftali, I actually have had it rented out since October 1st, I had to wait until I made 6 mortgage payments before I could begin the refinance process. Hope that helps!

I didn't find the comps, that is the appraisers job. When you apply for a loan the bank will hire an appraiser and they will provide a loan based on the appraisal he/she provides. For reference when I purchased the house the appraisal was $153k. You're correct that the square footage didn't chance, along with all of the other objective attributes but the condition did. An appraisal includes a condition C1-C5 and when I purchased it it was a C4 so I lost as much as $15k compared to some comps. When I refinanced it it was a C2 and was credited as much as $20k compared to some comps. Another contributing factor is that appraisers will use different comps based on the subject house. Before the rehab the comps were original condition worn out houses and after the rehab the comps were completely renovated flip type houses. I keep a close eye on my market so I had an idea and going in I was expecting an ARV of around $200k, but the market did quite well over the summer and when I applied for the refinance I was expecting closer to $220k, so $229k was a pleasant surprise.

Thanks Angela, this was a conventional fannie mae loan that you can get from most any bank or credit. To get conventional financing the house basically must be liveable, and although this house was very worn out, it was in fact liveable. That was a big help in this deal because at this point I wasn't comfortable taking out a hard money loan.