All Forum Posts by: Steven Foster Wilson

Hi @Stephen Wiater,

Refinancing does not exactly work like that. There is something called LTV (loan to value ratio). Meaning you cannot pull out 100% equity in your property. Most lenders will only allow you to pull out 80% of the ARV. It is essentially keeping 20% in the property like a down payment of sorts. Also you will have closing costs on a cash out refi.

So your ARV is 225k x 80% = 180k to cash out refi. 180k-170k = 10k - closing costs 3k = 7k

That means you will have about 7k to cash out. I don't think its worth it.

Houses built back in the day were built better then houses today. I have a 1900 duplex in Columbus and the foundation, brick walls, and joists are in great condition. 

However with age comes need for new appliances, furnace, water heater, ac unit, and maybe even some cosmetic updates.

Good on you for thinking outside the box with the other rooms and floors. To find a matching wood that would look relatively similar would be quite easy, even a big box store might have matching wood. If you are going to sand and refinish the floor, have a professional do it, it is a pain in the butt. I Just had my floors refinished and it cost me about $3 / sqft. 

Eight months ago I purchased my first duplex with an FHA loan. I only had to put down $15k, it was great! However I have had a dream of owning large multi-family properties (30 units or more).

How do I go from one duplex to a large apartment building?

• Is financing the same, do I need 20% down? That seems like it would take a TON of money
• What is the searching process like? Do I just search on Loop net?
• How do I transition my mindset?

DO NOT PUT TILE IN THE LIVING ROOM. Yes it looks nice and is cost effective, especially if you have a concrete slab to thinnest the tile to. But in your rental you will have tenants who will drop things and CRACK the tile, causing a sharp hazard. It will be more work for you to replace it, then to install carpet, or engineered hardwood.

The bathroom you can do tile because theres less of a chance of of anything bad happening. Everywhere else go with wood.

Maria,

Referrals.

Personal referrals are your eyes and ears as far as what the contractor is like and how he will operate. They will tell you the contractors faults and expertise.  They will also let you know if he is trustworthy.

• New vanity top
• new paint
• new light fixtures
• new tile

You could have an updated bathroom for $1200 DIY or $4000 professionally done.

My wife and I make 70k for our w2. This year we bought our first duplex with an FHA loan. We have friends living with us and have made about 6k from them for the eight months we've lived here. We have spent 40k in renovations. Will this look like a major loss to the IRS, ending up with us getting a large sum of money back?

Hi Jessica, I co-own a landscape design company in Central Ohio and I get this question a lot. "How much will this landscaping / patio / deck increase the value of my home. The truth is, not much. I always say redo your outdoor living space for your own enjoyment. If you are looking to sell your home, don't bother wasting your money, stay inside. As for the permits, they will be fairly easy to get and its worth the extra 20 mins and $200 fee rather then getting a stop work order.

For example, here is a picture of a project nearly 100k for the patio and overhead structure. Increased value? Home appraisal, maybe 1-5k but the enjoyment the family gets out of it? priceless!

Tyler, I have done this before. It is a fairly simple job for someone familiar with the project. This project should cost less then 5k, anybody telling you otherwise is high. What is your foundation made of? Do you have pictures of the area?