All Forum Posts by: Yoann Mamy Randriamihaja

@Raymond B.

 good to know! thanks a lot :)

@Nick Noon

 Some of the added costs are:

• the up-front PMI at closing (I think 1.75% of the loan amount)
• the monthly PMI (which was lowered recently to 0.85%)
• FHA consultant fee (for inspection before you buy and during the rehab)
• there might be some fees for title search at each draw to check if there are no mechanic liens on the house from the contractor

I hope that helps!

Yoann

@Steven Segal asbestos removal prices estimates that we got were fairly comparable.

One interesting thing that was told to us is that if the property is owner occupied, then the owner can remove the asbestos themselves. Not sure if I would risk it though!

The actual layout is 3BR, but very small ones, so we wanted to make a nicer "master" bed room with some real closet.

Thanks for the price range for painting! Will definitely be useful.

Yoann

@Michael Smith

Very good post, thanks a lot!

@Nick Noon my wife and I are also looking into buying our first property using a 203k loan. Though it is an amazing help to get financing for the rehab, it surely raises a lot of questions!

Here are some answers based on what we've learned so far but keep in mind that you should check this out with a pro :)

First of all, with $10k in saving and using the full 6% seller's financing, I would say that it will be hard to borrow more than $100k for purchase plus repair (we just went through those numbers for a similar project).

1. 1. You may need an architect if you modify the facades (like windows positions or numbers), the interior layout (like touching load bearing walls) or foundations
2. 2. I think you pay nothing the first full month in both cases (stream line or not). So if you close mid April, your first payment will be on the 1st of June
3. 3. I think it is a hard rule that you need to have 3 months of PITI in saving AFTER paying all closing costs
4. 4. Haven't got that far yet! :)

I hope that helps!

Yoann

@Dave Anstatt this is definitely not easy!

Here are several things we tried:

• search for BP members in the area and contact them to get references (it worked OK, we've got one GC that we definitely want to vet through a rehab project)
• we went to the AIN meeting (real estate investing meeting) close to Albany which occurs every 3rd Monday of the month. There are several contractors there plus a lot of investors with potential references (met a great foundation guy there)
• we went to construction material stores (like grossman's outlet) where contractors left business cards and called them all after writing a screening script (found one GC that we'd definitely like to work with in the future)
• registered to Angie's list to try to find more information
• found another GC using the website thumbtack that we are considering for our first project
• posted on BP but didn't work out :(

We haven't tried yet going to the home depot at 6 am at the pro-desk to randomly ask contractors but that's on our to-do list if we ever need more contractors.

Still looking for our first deal. We were very close last week to make it happen but home inspection revealed severe foundation issue ($20k more than expected) so we couldn't move forward but there are tons of other deals around! :)

I hope that helps!

Yoann

Hi All,

We are looking for our first property to invest in and want it to be a multiple family that needs some rehab, financed using an FHA 203k loan.

We are struggling finding a general contractor that can give us a realistic price for the type of project we want to do. We are looking to invest on a neighborhood where rents are between $700 to $1000 for a 2 bed/1 bath and would like our property to be above average without anything fancy.

The issue is that we get quotes ranging from $45 to $155 per sqft!

Here is a description of the latest property we are considering:

Partial rehab project of a 3800 sqft multiple-family brownstone building of 3 stories (3 units) in Troy, NY. Built year: 1890. All 3 units have the same layout (3 bed/1bath) and are redone the same.

- Kitchen upgrade and vinyl flooring replacement (replacing countertops and backsplash with plumbing and sink/faucet with new appliances, we will repaint the cabinets ourselves)

- Bathroom remodeling to include demolition, installation, plumbing repair or modification, and tile flooring (~42sqft per bathroom)

- Convert two bedrooms into one with a walk-in-closet

- For the flooring: Remove all carpet and refinish hardwood floor

- For the painting: patch and repair walls and ceilings and re-paint.

- Verify the existing installation for heating and water heater (new heating system on 3rd floor)

- Remove asbestos insulation and pipes in the basement

- Verify the existing electrical installation and upgrade to support new appliances

- Some windows to be changed and we may consider to change them all depending on pricing

- Repair the roof if needed

We are also considering doing most of the work on the unit we would live in (other than plumbing and electricity) but we really need to find a GC that can work within our budget!

Thanks,

Yoann

Hi Colleen,

Indeed! It seems like having a receipt is the right way to go.

Thanks for sharing your experience (made me think that I need to ask how the rent should be paid as well :) )

Yoann

Hi Jerry,

Thanks a lot for your answer! I will definitely ask for a receipt for the security deposit.

Hi Daren,

Thanks for your answer! I will add to the receipt a description of how the security deposit is supposed to be returned. It is true that my past leases are a bit more descriptive (with around 10 pages plus addendum in fine print) but most of it describes a 1001 ways for me to be evicted. For a month to month lease, we both can terminate it with a 30 days notice, so I guess that's how all conflicts (if any) will be settled.

My gut feeling tells me that this person is solid and trust worthy. I hope that I am right about that!

I'll let you know how it goes.

Thanks

Yoann

Hi All,

We are changing apartment for a cheaper one while looking to do our first deal (MF with rehab using an FHA 203k loan).

We found a good rental with a very nice landlord that seems really trust worthy but I'd still like to verify some points with you.

The proposed lease is handwritten as follow (I removed names and address):

"I landlord-name agree to rent apt.-address to my-name beginning date for the sum of $rent a month. Tenancy will be from month to month. With a thirty day notice required to terminate said agreement"

I have several concerns for which I'd like to seek your advice (I'm fairly new to renting in the US):

- does a handwritten lease have any legal value?

- I am asked to pay a 600$ security deposit (which I'm perfectly fine with) that is not mentioned in the lease. I feel like I can just lose it without any recourse possible.

Have you ever encountered this kind of situation?

Thanks for your help!

Yoann