All Forum Posts by: Shane Brandt

Hello BP,

I purchased my first investment property a month ago by using a construction loan and will be using it for the rehab as well. 

3B/2BA 1,600 sq ft

Purchase price was $20,000

rehab $15,000

ARV $76,000

I also just got my primary residence under contract and am set to close in middle October and plan on using a construction loan for the purchase and rehab. 

3B/2BA 2,200 sq ft

purchase price $59,450

Rehab $20,000

ARV $115,000

Is this a good strategy to use since it's no money up front out of my pocket other than the earnest money and getting insurance on the properties?

How many construction loans can one get?

Is it similar to the number of conventional loans since after the rehab it will be converted to a traditional loan?

Thanks 

-Shane

Hey BP,

I purchased my first investment property at the beginning of August in Decatur, Illinois. I've gutted most of the inside except 2 of the bedrooms where the drywall was in good shape. As far as making all the necessary repairs I will have My father and brother finish out the rehab work. My father owns a residential construction company so that helps with some of the rehab costs. 

I cant decide if I want to hold this house and then do a heloc to help fund the next property or flip this house to fund the next property which I have under contract.

Details about the house

3b/1.5ba 1,600 sq ft

House listed on mls for : $35,000 

Purchase price : $20,000 

Financing : construction loan @ 5% interest only

Rehab (estimate) : 15k 

Arv : $76,000

Estimated rent : $875 / month

Estimated cash flow : $250/month

My goal as of now is to build a portfolio of buy and hold properties so I can quit my W2 jobs within 15 years. However I'm not opposed to dabbling in other areas of rei. 

 Bryan, I've been to mattoon quite a bit and can tell you it smells alot better there than Decatur. When I leave Decatur for a couple of days and return I get that refreshing order I become accustomed too here in town (old burning tires and other smells lol).

I have a pretty good grasp on the market here in town as well as the small surrounding areas. My fathers construction company did and still does lots of work for the local real estate companies here In town. Which has helped me network with them and be able to get into houses quicker I would say. 

I'm just trying to decide if I want to go the primary route or the investment route first. I'm not sure if I can get a conventional loan for a primary as well as say get a construction loan for an under 40k investment property at the same time. 

 Thanks for the welcome Justin as well as the links provided. I will def take a look at each of them.

 Thanks Andrew!

 George I am currently living in Decatur, Illinois. Not very many duplexes available here but a few that I'm gonna be taking a look at next week. 

Hello BP! 

Former residential construction worker turned railroad conductor in central Illinois. 

I'm hoping to learn as much as I can about real estate investing as well as networking through the BP community. 

I currently rent an apartment and I am looking at purchasing either my 1st primary sfr or continue renting and purchase my 1st investment property.

Hope everyone is doing good and I look forward to being active in the community.

-Shane