What Is First Line Of Financing?
I am going to rehab and sell a property but was wondering about financing the purchase. I have a HELOC available for $250K. Is it best to use that to buy a property or try to get a mortgage, or what is the sequence of alternatives to follow?
Yhanks
I agree wholly with pervious post.
Only thing I can think of is what is the purchase and the rehab costs. I wouldnt go over 50% of your HELOC line on it, so you have justin case money.
If this is your first Rehab then Id suggest having reserves for begginner mistakes and crew issues that always arise.
What does he mean no footings and how does he know? If it was a carport was it a carport witha legal slab?
If the slab is there for the carport then obviously it had to have footings (if they are required in that area).
Go to the building records department and pull a copy of the plans. That can tell you what was done when the foundation was being set better than some inspector guessing on footings.
I had one tell me I needed a stemwall when the building we were doing did not require it. I had to go over his head with that.
Just get the building plans before you proceed.
Send me a pm and I will send you my email.
Is the slab for the carport on the plans? That will tell you about the footings, thickness etc.
At most, all things being equal you should be required to make sure the floor is the same level as the regular living space and
Is the house listed as having a carport or such on your closing paperwork?
You should be talking to real estate agents about the market in that neighborhood assuming that you are trying to flip it after rehab. You need to determine the velocity of the market-- i.e. demand, average time on market, etc. You may be a little thin on margin if you have to hold it for awhile. One of the major uncertainties is your holding costs when you are flipping properties.
If you are planning on holding and renting it out, then try to find management companies that manage in that neighborhood to find out what going rents are and how long it may take to find a tenant.
[ Edited by edmeyer on Date 05/03/2007 ]