All Forum Posts by: Mike V.

Is there a finished attic? I had a 400+ sq ft finished attic that only counted for 150 sq ft due to ceiling height limitations. I believe they only counted area that had at least 7' ceiling height

I'm in.

Tim,
I use that equity to fund other deals (flips or rentals)so technically its still in play but a little harder to see. For example I just pulled 40K out of one of my rentals. It is worth around 150K and my mortgage is now 130K instead of 90K. With a mortgage of 130K I can't see an attorney wanting to mess with trying to take it. The 40K has been spread out in several different opportunities which are harder to see. Yes, with some digging all of my assets are uncovered but I just don't want to be too obvious of a target.

Tim,
I typically get a construction loan thru my local bank for a rehab. I am responsible for 20% down of the purchase price and they loan the remaining 80% of purchase price plus 100% of rehab cost as long as the total is less than 80%ARV or less.
When I moved my personal residence as described in my previous post I had to use a bridge loan since I hadn't sold the home I was living in yet. Once that was sold I used the equity from that house to payoff my rehab expenses.
When all the work was done I pulled a HELOC to fund future projects.
I would recommend you work with a local bank that can work outside the box of conforming guidlelines. With your credit score and a good down payment you shouldn't have any problem finding someone to work with you.

After a couple years of rehabbing there was no way I could bring myself to buy retail so the home we moved into last year was a complete rehab. We lived in one of our rentals for a couple months while the majority of the interior space was completed. Biggest advantage I see is the tax savings - every two years I can sell and have completely tax free profit. Biggest disadvantage is moving every couple of years if you want to keep maximizing your tax savings.

250K. One year living expenses and enough capitol to have at least 3 rehabs going at once. Here is the big unknown - will my bank continue to allow me to have 2 construction loans at a time when I have quit my day job? They are open to it but no hard commitment at this point. I would definately pursue private money more seriously when I go full time.

I only have a couple rentals but I hold them in my name with a million dollar umbrella and I refinance to strip most if not all equity out. Yes it cost money to refinance and pull equity out but I view it as a cheap (compared to hard or private money) way to borrow.

My CPA charges $80/hour for consultation, I only meet with him once or twice a year.
Last years return was $895 - personal return with 3 rentals, 2 flips, moved primary residence, and some stock trades.
I had someone cheaper but they only had limited RE experience.

It is with US Bank, I don't have my primary mortgage with them but i do have a rental mortgage and chekcing account there. They go up to 90% LTV so you should be able to get 63K if it appraises at what you think it should. At the current rate of 3.99% your monthly payment would only be around $200/mo so low income may not keep you out.

Thomas,
I just got a HELOC on my primary residence that I purchased 9mo ago and did a 80K rehab on. Between my HELOC and my mortgage I am well over what I paid for it including the rehab cost. It really comes down to what it will appraise for and what you already owe on it assuming you meet debt to income limitations and have good credit. My bank allowed up to 90% loan to value.