All Forum Posts by: Nicolas Yopp

@Justin Lester - Thanks. I think at this point, I'll wait it out and see what happens.  I feel like I'm rushing into this without being quite ready. I'll keep you in mind the the next opportunity comes up.

@Grant Schroeder - That's good to know that you can go lower down payment. I think it would be nice not to have a PMI to start with. I think I'll wait till I build some more cash first before proceeding. I'll reach out to you when I'm ready for a purchase.

@Brandi Croom - Hi Brandy, nice to see that you're a local.  I of course don't have any track records with investing since this would've been my first investment.  I have been a designer for the last 13 years plus high end custom home new build / remodel construction for the last 20 years.  Not sure if having that experience would make a difference with your hard money lender? I'm sure they're hoping someone bites with their high price. I could always try asking if the owners next door is willing to do seller's financing, but I think I'll wait it out and see what happens next few months.  If it hasn't been sold yet and they accept seller's financing. 

Since I'm new to hard money lenders, would I be able to get hard money lenders to finance the build and renovations of the house after I purchase the property? Since I would need time to draw up the plans then get engineering then get permits before being able to start the build, don't want to waste interest during those "waiting" periods.

@Steve Milford - I saw my neighbor outside yesterday, so out of curiosity I asked him how much he's currently renting for - $190!!!! What? But, based on the condition of the house and it's also caked with cigarette smoke inside the house I could see that.  So it definitely won't cash flow at first.  I believe you're looking in Bend, Oregon which has higher rent prices. This house is in Redmond, OR.  Improving it slightly won't really work on this house, it's really not in that great of a shape.

The only reason why I was thinking of adding an garage ADU is so I can have a garage next door since I don't have one on my property, just a small shed. So would be nice to have a place to store all my tools etc. with the ability to rent the upstairs for additional income.

This will be my first investment property.

This just was posted for sale and my wife and I have always talked about the potential to buy this house. This house is currently a rental and has been for the last 10-15 (maybe more) years I believe and it needs quite a bit of work. New windows, doors, siding, the roof is metal so can paint it, and new everything for the interior. My thinking with this is there's an opportunity to build an garage ADU in the rear of the property which we can build first, get someone in there while the same rental is stays at the house if he wants to stay. Then remodel and/or add-on for the main house. While we are not quite ready to buy it, but the opportunity is now there. I'm a design - builder, so I can design the ADU and the renovation of the house. Don't think I'll have as much free time to build it myself, so I'll have to ask around who can help.

I think their asking price of $189k is quite high based on the shape the house is in and it's only 500 sq.ft. Currently has 1 bedroom and bath. I was thinking of perhaps offering at $150k? There was a house similar size 2 years ago opposite from our house which was sold for $157k and it was in a bit better shape. He has since fixed it up quite nicely. We only have about $15k cash available right now, and in order to buy an investment property you need 20% is that correct? Which is $30k and that's something we don't have on hand.

ADU will be about 700 sqft 1 bed / bath - about $1,000 - $1,200 a month. The house can add new bedroom maybe bath? So 2 bed / 1.5(or 2) bath? - $1,200 - $1,500 monthly?

Here's my math if I did it correctly. I'm guessing the garage ADU will be about $100-130k to build it, then the house maybe $80kish including adding a new garage at the house. How hard would it be to get a construction loan and or hard money lender for both the ADU and house.

The total loans of about $350,000 without down payment. In the end after both are completed with the build, it will be roughly $800 cash flow after expenses paid for that is if I did my math right.

Any hard money lender we should look into in the Central Oregon area that would be willing to help first time investor? 

Hi,

I'm still trying to grasp the idea how the process works. First you get hard money loan then when ready to refinance. How do you refinance into your name? Do you need to have good credit scores and low DTI? Just trying to get an understanding how the process works on the refinance side. What do they check etc.... I don't have any spare cash to invest unless I go the hard money route.

I'm still working on cleaning up my credit - broken leg twice with in 2 1/2 years and not able to work for almost 9 months to a year really hurt me.  But back to normal and really focusing paying off my debt.

Thanks guys!  They were supposed to get back to us today with an answer, but that didn't happen so hopefully tomorrow.  I talked to my lender and he said that there's only one 203k consultation in our area and we will get in touch with him once we hear back about the offer and he can tell us more in detail of who we can use etc...

Well, that's a bummer.  How long does the procedure take to have my dad become fha approved contractor?  I looked up on 203kcontractor.com and there doesn't seem to be any approved contractor in central oregon?  Not sure how legit that website is.  But my lender will give me a list of 203k consultation soon and we will get in touch with one of them and know more about the whole procedure.

Hello all,

We put in an offer on a house, haven't heard back yet and we should know by tomorrow. We are trying to get the ball rolling and get our contractors set up for bids if they accept our offer.  I'm planning on typing up the estimates and give them to our general contractor friends and they can type it up in their own words and numbers.  This house is in Redmond, Oregon.  I've always worked in construction with my dad growing up and the last 6 years was full time with him after I finish college.  Anyways, back to my question - is it possible to use my dad as the general contractor for the 203k?  I'm plan on doing all the work myself with my fiancee.  My dad has been the general contractor for some high end homes the last 25 years and I find it silly that 203k requirements states that you can't use family members as the general contractor even tho we are in the field ourselves?  I actually have my own specialty license - it was just expired so I will need to renew it.  

Your thoughts for alternatives?  I have several general contractors friends that I can use, but don't want to burden them with a lot of paper work I would assume?

Thanks everyone for your suggestion for books and other websites.  I totally forgot about 123flip.com.  Thanks for the reminder.

I went to Barnes and Nobles yesterday and tried to find J Scott flip book, they didn't have any in stock so I got Millionaire Real Estate Investor and Investing in Duplexes, Triplexes and Quads: The fastest and Safest Way to Real Estate Wealth.  Thought those 2 would be a good start!

@Paul Timmins - the @ is not working right now? Anyways - I have no idea if there's a service that will translate the podcast to written material at the moment.  The technology has improved a lot lately for captioning and other services for the deaf which has been awesome and they keep adding new features!

Nic

Hey everyone,

I've been lurking around biggerpockets ever since I found this forum.  This is awesome with great community.  I have been reading a lot of different threads.  It has been a great help.  I've read the biggerpocket "pdf book" and I'm looking for other books to rent/buy.  Tried to find some in the libaray, but they didn't have anything good.  So it's off to the store to buy some.   One issue with podcast is I am deaf and cannot listen to any of the podcast.  Is there any other alternative beside books?

My fiance and I are in the process of searching for a duplex as our first investment property.  Bend, Oregon is currently rated as the top 10 most expensive property in the country which makes it really difficult to find some good deals.  There not many duplex available in the area.  I'm currently trying to find some wholesellers in the area.  I'm not a people person, but I know that I need to push myself to try to network with other investors, etc.