In this case you always have money left in the deal.3)You never pay PMI (private mortgage insurance) if you refinance at 80% of appraisal or less.4)In Texas (and perhaps other states) if you refinance within a short period there is a discount (40% I believe in Texas) on the title insurance for the refinance.This actually saves more than the cost of the additional lender’s title ($100 in TX) when purchased.In my case I didn’t even purchase lender’s title when I bought the house with the friendly loan and still got the discount when I refinanced.My friendly loans are with my own money, lent to a friend with a personal loan, who relends to me with a mortgage loan.Our terms are mirror image for the personal loan and the mortgage loan.Ideally the loan includes all costs, including future repair as I want to be able to get all money back when I refinance.The ultimate refinance means you have no more than 80% or less of market value total into the property so when you refinance you have no private mortgage insurance to pay.That also matches with conventional loan standards of 80% LTV for investor purchases.There is no industry norm requiring you to wait any period of time for a “rate and term” refinance so you refinance as soon as the rehab is complete.There is no law about getting a “cash out” loan immediately.That is simply the current lending standard for most lenders.A “cash out” loan is one where you paid cash for the deal and now want to refinance to pull your cash out of the deal, hence the name “cash out loan”.Unfortunately industry norms currently require you to wait for 6 months before they will give you the cash out loan which is the reason I use my “friendly loan”.In Texas, once a cash out loan, every refinance by the same owner is also a cash out loan.In Texas, cash out loans are more restrictive than refinance loans and cash out loans do not qualify under some government sponsored finance programs available to rate/term refinance loans – another reason I prefer rate/term refinancing.I recycle legal docs (promissory note, deed, and deed of trust/mortgage) that I got from an attorney that I alter for each purchase.

You can use a form called an ‘amendment of contract’ form (available for free online, just google it) to alter the original language in the Purchase & Sales agreement/contract.

There is no guarantee that the next tenants will be better or get along better.Examples:Operation, Maintenance, Storage, Alterations to Premises: On a continuing basis, tenant agrees to: Keep premises in a clean, neat, and sanitary condition; no parking, storage, or accumulation of debris on lawn or yard.Not store non-operating vehicles, nor boats, RV’s, motor cycles, trailers, firearms, equipment, tools, hazardous materials, liquids, paints, fuels/oils or chemicals on premises without landlord/agent approval; no waterbeds

Allow them to choose their finish specification and have them pay for any alterations or upgrades based on the spec sheet and revised pricing from the spec sheet.Collect a deposit upfront, along with the full price of any alternate finish selections.

Again,  I don't know how any of this will translate in Texas, but hopefully some of it helps! 

I think as long as you are not altering the structure then a permit is probably not required. 

On Apex, it might alter the real estate investment landscape in the future but it has not as of today.

Some communities don't have any C, D, F grade housing, so if you are investing in those areas you are probably going to work on an altered scale. 

With that being said 203k is a great option to fix, repair, as well as alter the home with ultimate goal of increasing the homes overall value.

I would love to work with other members of Bigger Pockets on any project they may have. I am in the process of re-expanding my business after the downturn of the last recession. We handle anything from the tip of the ...