Need Advice
I recently bought a property in the bronx- it is bleeding me about 300 dollars a month but it is appreciating nicely- I bought it at 425,000 with 5% down and it is now FMV 500,000- the mortgage is covered but the little electric bills and heating bills is stopping the cash flow.
My problem is that the basement can be converted to a unit with four rooms that one could possibly rent on a weekly basis.
I have a contractor that gave me an estimate of 30,000 to do a solid job- adding bathroom and kitchen, sheetrocking the indoor garage and making it into two rooms like the neighbors have it, seeling off all the pipes. I am wondering if I do this and take the risk of renting basement apartments to cover the cost. I am waiting on a bank to give me a line of credit. Is it also wise to use a credit card?
Any one with a proven contractor that can really do basements at a good price and work fast and well
Thank you for your input
If you used your credit card you should plan to refinance at a higher value so you can pay down the debt. The other choice is to try to get a home equity loan or HELOC to cover the rennovation. Would you be able to justify a higher value based on the additional rental income? This still looks like a single family so it would have to appraise. Were you planning on keeping the property?
Currently how many units are in the building?
<br />If heating and electric bills are whats hurting you there is a solution.
<br />Details will not be posted.
(posting contact info is not allowed in this forum)[ Edited by Mize on Date 09/07/2005 ]
Hi bigtime18,
I am currently under contract for a three and two family in the Bronx. They are my first properties in the Bronx. Where is yours property located and what kind of rents are you getting?
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