All Forum Posts by: Scott Steinlauf

 Hi Tee,

You have a lot of options with your questions above.  The utilities would depend on if they are separately metered. This sounds like potentially a very good plan

I'm a first time homebuyer. I want to do something that I'm not sure has been discussed here. I found a multi unit 2 unit property that I'm interested in. I can afford the mortgage myself, its less that I currently pay for rent. I'm not sure I want to do a house hack situation. I just recently started getting interested in real estate investing, so I feel like I have quite a bit to learn. I would like to live in it for a few years, then buy and move to another property (possibly another multi- unit or a SFH), but keep this property then rent it out. Has anyone done similar or is this just a terrible idea? What are some things I should consider if this is my plan? The property is separately metered, so I think that's one thing I have to consider- paying double utilities unless there is a way to switch over to one bill.

Hello BP Community!

I have recently located an ideal MFP in the Chicago suburbs (Bellwood) that I would like to invest in. The property overall is in nice shape with some work needing to be done on replacing carpets, some painting, and or replacing wallpaper (at least from what I could tell from the MLS photos).

The property is listed at 250K, and with some TLC on the units I could charge a reasonable amount for rent of the other unit I will be leasing to someone else.  

Even though this is not a full analysis of my research on this property, would this be a good investment regarding the condition of the property, the location, and the quality of tenants I may be able to attract? 

Hi,

I am currently in discussion with my neighbor to purchase a 4-unit building in Chicago (Logan Square). The current layout of the building is 2 floors, with 2 units on each floor, and there is an unfinished basement (supposedly about 7 ft. tall). While I have not yet seen the inside of the building, he did throw out a number. However, the building is in need of a full gut rehab, as the building has not really been updated (has furnace from 1956, will need updated plumbing and electricity). My plan is to merge the 2 existing units, so that I have 2 bigger units measuring about 1,500 sq. ft. each. Additionally, I plan to have 2 new basements units (about 600 sq. ft. each). The building will need to have new roof, tuckpointing and the balcony will need to be possibly replaced. I understand that this is an ambitious plan, but what would the rehab cost me, roughly? I am trying to have some type of estimate so that I can assess whether what purchase price would be fair. I appreciate everyone's help in advance.

Thanks,

Gabriel

Hello!
Just a question to see if this is doable... Is it possible to refinance a hard money loan into a traditional/DSCR 30 year loan if I don't have that much equity in the property? Not a cash-out refinance, just a general refinance. For example, I buy a 4 unit using a hard money loan(Interest only 12 month) but only put 5% down on the property, and after finishing fixing it up I want to keep it for rental income. But, would I be able to get a traditional/DSCR loan on it if I only have 5% equity in the property, or would the lender require me to put down additional money onto the property?

Thanks!

I have found a property that has a perfect location and I just need to do the rehab for this property that I am sure will be super lucrative but the location also makes it a prime if I just wanted to do a traditional rental. How can I secure financing?

@Sean Anggani

Look at the rental comps in the area (ideally the same building as your unit is in) that are renting for $2300 vs $2600-$2700 and determine if it makes sense to make the upgrades.

Ex: Let's say you increase your monthly cash flow by $300 by investing $25k into making the improvements.

$300/mo x 12 months = $3600/yr; divide that number by your investment of $25k = 14.4% ROI on the improvements.