Renovation
I have not done any renovations so am looking for some guidelines on what I should expect to spend. I have a unit I am trying to rent, but the kitchen is so outdated (thats what propective tenants are telling me when I request feedback after they express non-interest) that I think I will need to redo it in order get it rented and able to rent it at market rent. Its rather small so I dont think it should be too big a deal, but wanted to get some ideas or recommendations. I will need new appliances (dishwasher - stove)...the refrig is new.
P.S the unit is in Cary, N.C
Thanks,
Pat
There is a "rehabbing forum"...lol.
What kind of price range is this unit in? Top of the line downtown condo? In the hood?
give me an address close by it and I will map in and tell you if I know the area.
also, pull demographics from the census site or other source based on that zip code
you can also call the police department and ask for a crime report on the address/area/ or zip and they might be able to give it to you- also try their web site.
keep in mind that Ft. Worth rents are typically a lot lower than those in Dallas.
I would not do it. Find another lender. You might be able to refuse and bluff them into still making the loan. This is not standard procedure. Normally, they would just ask you to personally guarantee the loan.
[addsig]
Greetings smithj2,
This is actually pretty common. Not to mention, you’ll most likely get a much better loan doing it in your name rather than your LLC.
If you want, once the REFI is done, you can always move it back into the LLC. The loan will obviously stay in your name, but you can move title back over.
In regards to other ramifications, you may want to talk to your CPA to make sure you have everything covered tax-wise.
Just my initial thoughts.
Hi LOK,
I got to thinking about my response after I read yours, and I should probably qualify my statement. I automatically assumed that the existing loan was done in the individual’s name and not the LLC. So, I may have been totally off-base in that assumption.
As I’m sure you well know, it’s not uncommon for people to buy a property in their own name and then transfer title to an LLC or a trust -- and then want to REFI down the road.
If that’s the case, a lender will typically want it transferred back before they’ll do a new loan. Unless, the individual want to qualify through their LLC – which completely changes the guidelines and loan programs they would have available.
However, if the original loan was done through the LLC, and he’s just wanting to do a REFI, a personal guarantee should be sufficient -- as you pointed out.
And I agree with you -- I believe anytime someone transfers title it can be construed as a sale and could trigger DOS issues.
: )
I agree w/Mcole. If the property was originally finaced in your LLC name, then why not refi w/the same lender. It is difficult to find lenders for LLC w/o a 70/30 that is why most of us finance under our individual names and then transfer to the LLC. And, there are only a handful of lenders that will lend to LLCs at reasonable rates without jumping through a LOT of hoops.
You get a better loan rate and insurance rate which out weights the benefits from an LLC.