All Forum Posts by: Account Closed

Thanks @Katie Neason, that makes me feel a little better.

Yes, @J Scott everything is new and improved top to bottom. 

I got spooked because I just took out a HELOC and the banks in-house appraiser followed the last sale price and PVA to a tee, right at 215k. It's a 4bd 2.5 bath, 3900sqft SFR and the appraiser used patio homes as comps because that was the only way he could get an end result that low. He also didn't go inside the house or take into consideration the 60k+ worth of improvements.

It sounds like if I get an accepted contract with a decent sales price, the PVA is relative and I just had a bad experience with the HELOC.

Here is deal - I bought a foreclosure for 215k last year to "live-in flip." Would love to sell it this Fall and list at 375k. My concern is that it won't appraise, especially since the PVA is set at 215k. 

I figure that a low PVA value compared to a high ARV is a common obstacle with rehabbers / flippers. Does anyone have any advice or knowledge they could share about successful appraisals in these situations?

How important is the PVA vs. contract list price?

You definitely added a different flavor to this post, @Jeremiah B. 

I think there are ways I can get started now, but your post provided some necessary balance.

@Josh Jacobsen 

@Will Pritchett 

Awesome advice and thank you for providing your real-life examples! Clearly there are about 1,000  different ways I could go with this, and a lot will depend on the deals I run across. I will definitely follow up but I appreciate your conservative approaches because as someone just starting out I think they are more in line with my current strategy.

Actually, there is quite a bit you can do. We are currently expecting and once we re-evaluated our cash budget I decided to get into real estate investing. It's basically the reason I'm here. In addition, we have made adjustments to insurance plans and increased our HSA contributions, ect

However, I see your point. There is a balance and at some point you just have to do it. Thanks for the input on creative financing.

@Wendell De Guzman 

So after reading your comment I went out and read the House Hacking article by Brandon Turner:

http://www.biggerpockets.com/renewsblog/2013/11/02/hack-housing-get-paid-live-free/

Very similar to what Jean said in the first post, but after reading more on the topic, this is definitely worth consideration. Thanks for the tip @Chris Gilbert 

I actually am a licensed agent with my license in escrow, and my mother-in-law is/was my broker! So I should be okay there :)

@Jean Bolger 

Thank you, @Bill Exeter 

You all have been a huge help and have represented BP very well on my first post. Many thanks!

Very true, I am still very green and am excited to use the knowledge I have picked up on the site (2%, 50%, Ultimate Beginners Guide), so bear with me! Major expenses over next 8-10 would be very minimal. If I opted to rent, I would probably keep it for at least 10 years. In terms of monthly items, I need to do more research but I think it is common for the tenant to cover all monthly items. Thank you for your insights, @Chris Vail 

That is an excellent point, @Brie Schmidt 

DTI is also pushing me to sell and downsize as well. Very astute of you to address the auto loan. The APR is only 3.9% so with inflation factored in and the fact that I could use that 12k as a down payment, I have some interesting options. I have absolutely thought about paying the car loan off with any equity I pull from the home, as you suggest.

A follow up question for @Bill Exeter 

In your opinion, do I try to sell now or wait until August 2015 when we hit the 2 year mark and avoid CG altogether? We bought the home for 185k. I listed for 209k. After negotiation and realtor fees I'm guessing we may net 10k. If sold we would then move in with family until we found a great deal.