All Forum Posts by: Scott Vaeth

@Logan Singleton I do plan on living in it as my primary with the goal of renting out rooms to start. I'm trying to make this a long term rental though. With the 12-month interest only loans, is the goal to refi and flip as soon as the rehab is complete? 

If a fixer upper only qualifies for a renovation loan instead of a traditional conventional, do I have to fund the construction costs through the loan? I'm wondering if I can fund the construction costs via cash to bring the house up to livable standards that way I'm borrowing less. 

Hello BP! I am gathering contractor bids at the moment on a property I'm trying to BRRRR. I received a partial itemized bill from a contractor where multiple tasks are grouped together. Ex: Installing Kitchen, Electrical, and Plumbing. Would it be a good idea to have the contractor break this down further? By individual tasks and hours it'll take to complete these tasks? I'd like to work with this contractor, but the numbers feel high as they stand. Once I have more bids in I'll be able to compare everything more. Any advice would be appreciated!

I'm in the Greenville, SC market and I'm looking to connect with some General Contractors. Does anyone have recommendations for finding General Contractors? I'm currently under contract awaiting the inspection report. I wanted to get bids through multiple contractors for the rehab prior to closing. Any feedback would be appreciated! 

The comps were pulled off homes that had already been remodeled. The goal is to put less than $80K into it since the sellers quote included work that's not necessary. I'm hoping I could save some money doing some of the work myself. The floors and interior paint were the bulk of my rehab costs aside from the kitchen and bathroom rehabs required.

My strategy is to eventually rent the house out after living in it for 12 months and refinance the property. I can live in it longer and rent out the bedrooms if that makes more sense to start though.

Thank you everyone for the tips! I don't want to overleverage here and spend more than I can afford. After receiving the pre-approval letter, I can confirm that the $80K is out of range. However, the seller's rehab estimate included updates I don't think is necessary to take care of right away (extending the size of the master suite, knocking down non-load bearing walls, and replacing all the flooring even though there's nice hardwood floors across most rooms). While it may not be the most economical strategy, is it worth submitting an offer and see what the inspector/appraiser comes back with if it gets accepted? The comps on the same street are $80K-$100K higher than the purchase price and I think location is a big reason why. A bit risky of a strategy, but if I structure the offer with $0 termination fee and the necessary contingencies, I wonder if it's worth finding out the actual costs then.  

Note: I'm not going to purchase anything that I know I can't afford, but the goal would be to BRRRR the property after living in it as my primary for a year.

Hi Nicholas, 

Apologies for the lack of info. If I get a rehab loan, which is based off the ARV, and I'm expecting $20K-$30K in equity after the rehab is complete, do you think it makes sense to cash out refinance? This would allow me remove PMI.

My goal is to live in it as my primary residence for 6-12 months before renting it out. 

Found an investment property where the location is great and comps are strong. However, the home itself is priced on the higher end of my price range and will require $80K in rehab costs according to the seller who is an investor himself.

A few low ball offers were already declined, and I'm not sure what those offers were. Currently houses on the street are comping for $60K-$90K higher than what it's currently listed at but it's been on the market for some time. I'm thinking about putting an offer that's $20K-$30K less than asking since I'm coming in with only 5% down. The seller doesn't need to sell the property right away so I'm hoping to tread carefully. I'll be living in it for 6-12 months as my primary residence, but would like this to kickstart my long term holding strategy in the future and rent it out. 

Here's the catch.. I don't have the funds to cover the rehab costs and mortgage payment. I'm talking to a lender my agent recommended who offers rehab loans that are tied to conventional loans and I only need to put down 5%. It sounds similar to the HomeStyle Renovation and CHOICE Renovation loans, since the rehab loan is based off the ARV, not the upfront costs. Are my other options for funding this? If this gets approved, I'm hoping to work with the general contractor and do some of the repairs myself. While I know private lending exists, are there any other loans I should consider? Any help is appreciated!

As a first time homebuyer and investor, I found a house that's in a great location and the comps are strong. Since it requires roughly $70K-$80k in rehab costs, I'm talking to a lender that offers what sounds like HomeStyle Renovation & CHOICE Renovation loans where I take out a conventional loan at 5% and have the renovation portion somehow tied to it. The loan they give me is based on the ARV, not the current home price. I will be following up with the lender to confirm.

Does it make sense to cash out refinance after the rehab is complete in 6 months to remove the existing PMI for only putting down 5%? I don't know if this makes sense since the rehab loan is based on the ARV.

@Richard F. Without calling the town, I couldn't find a reason why I wouldn't be able to. Can I call the town regarding a property's zoning/permits prior to ownership?