All Forum Posts by: Teri Feeney Styers

Let's see if this works. Here is a before and after slide show I made of the project overall. I couldn't make a compressed folder load - sorry. The area on the right end of the house is the new tiny apartment. (separate entry on side) The tiny part are pics 9-14. BTW: the tiny bathroom sink? Walmart.com! That sofa is the bed for the tiny apartment - the recliner piece lifts up to hold blankets and pillows and under the seat area is a trundle bed that lifts up to fill in the "L" to make a queen size sleep surface - very comfy - not like a traditional sleeper sofa. I felt it was important to show people how to use the space since it is so small. Lots of compliments on it...

I just completed my first tiny house project Douglas Larson. I took 180 sq feet in a SFR and made an apartment (fully permitted). My project is done and I'm getting very positive response on the concept. People like that they can legally earn some extra income and the whole thing came out really cute. I also did a land split and kept a small building lot where I will do some permanent tiny house construction - two units if I can afford it.

I've purchased a number of HUD homes and they never gave me the money! I bought as an investor. I think it may be money that has to be included in things like a 203K mortgage - or maybe even a regular FHA to ensure the property meets their lending standards - and the money is escrowed until the work is done - then paid to the vendor. You probably need a lender to weigh in here...

Susan:

Lenders are willing to look at low credit in cases such as yours if you have a way to prove that it was the ex that was responsible for the dip in the score. Divorce in and of itself is not an excuse.

However, these are investment properties and lenders may be less inclined to look the other way when it comes to allowing their finances to get upside down (no matter whose fault it was). So the question is: Does the income of each cover the expenses of each if properly managed? Is there any income leftover? If the answer to those questions is yes, then this is what I would do:

Borrow the money for the deliquent taxes from your family and pay them back with the cashflow of the buildings.

Don't try to refi at this time. Refi costs money upfront or creates a greater debt. 

Leave your equity in place. Equity is an asset on your books and you need to start rebuilding your financial picture. Decent equity can help overcome a low score or prior late payments in the eyes of a lender. 

Live on the monies from your job. 

You mentioned other bills - but didn't specify if they were related to your investment properties or were personal debt. You just need to figure out the best plan to repay - borrow in bulk from family? Use addtional income from rentals? Balance your personal budget to include a repayment program? 

Essentially, I would suck it up for the remainder of 2015. Get your taxes filed in January and then assess where you are. You need to get things balanced out and your new financial life rolling along in a predictable and affordable way. Show lenders that from the point where you took over, things went better. 

Aaron - I needed to learn QB for my job and I just took an online course for about $99. The course I took had you set up a fake company from the start. You could do the course and alongside start setting up your business. You need to be comfortable making adjustments on your own. For example, I recently restructed how my P&L was laid out to a format I thought made more sense for quickly seeing costs per project. That said, I'm sure a quick posting on Craigslist would find you a competent person.  

I would use that feature. Costa Rica anyone?

So, I just went through the process of doing two things: I bought a fixer house on a large lot. I turned the SF house into a duplex by creating a "tiny house" apartment on one end. I also went through a land split to carve off a small building lot with the intention of constructing a couple of tiny houses. Just started marketing the duplex this week and am getting decent interest. Everyone likes the idea of the tiny houses next door - but who knows if they will sell? These won't be on wheels... I live in a great tourist area - I've thought of an Air B&B concept but obviously I am not ready yet. I just don't want to make a costly mistake. Since you are building several maybe you could market it as a group retreat / family reunion kind of thing... or go for the whole Christmas theme... Keep us posted. 

It may not be the question you asked Aaron - but it may be the right answer... I recently converted a SF into a duplex without changing the square footage. As a duplex, its value is higher than when comped with other SF houses of a similar size. 

Anyway, I can tell you that in Colorado I had to start with my City Planning Engineer and then the County Building Department. They can help you to know what is required to make the conversion legally. Probably your tax assessor will get involved in the later stages. 

I don't know your floorplan, but you might consider expanding into only a portion and keeping the remaining as a smaller unit. I created a 180 sq ft "tiny house" apartment. Demand for affordable housing is strong everywhere... Mine is designed so it could be used as another bedroom suite for a larger family - but the option is there to make a monthly income. Multi-generational families are a common scenario too - perhaps a "mother-in-law" set up? If I were you I would keep my options as open as possible. 

any interest in grand junction instead - have a property that meets all your criteria except the Colorado Springs part...

I have totally rehabbed a 1955 ranch into a legal duplex. One side is a 1000 sq ft 2 bed 1 bath with hardwood floors, new new kitchen and bath, charming fireplace. The other unit is a studio with new new kitchen and bath - furnished and really cute. Both sides have private parking and private entrances. They share a laundry area (with new w/d) and access to the backyard. Quarter acre lot with pears and walnuts, roses and new sod (however, much of the lot is still not landscaped - ready for RV parking, a garage, gardens, chickens, whatever. Realisitic potential rents? 2 bed side $850 per month. Studio $400 per month. Asking price: $137,500. Sorry, no OWC terms on this one - I need my cash out for the next project. A savvy single person could buy this and live in the small side while the larger side made the payments... Or good opportunity to partner with someone. Let's chat!