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Posted: 6/14/2009 7:01:02 PM EST
[Last Edit: 6/14/2009 7:09:59 PM EST by CaptCanuck81]
In my endless search to buy my first home, I came upon a bank owned property that has some prospects.

Last owners were pigs. Holes in the walls, shit (literally sometimes) on the floors, hole in the roof of the garage. Piles upon piles of garbage in the basement.

Overall though, house has "good bones"

Doesn't seem like I can do a conventional mortgage with the amount of work needed. Reading up on FHA rehab loans, 203(K) "Streamlined" for upwards of $35k in repairs.

Anyone here with experience in this type of mortgage? Rehab loans in general?

Feedback greatly appreciated.

Edit: BTT - added "hookers and blow" to the subject line to draw attention to my plea for feedback
Link Posted: 6/15/2009 1:17:21 AM EST
Bump for morning crew. All 749 of you.
Link Posted: 6/15/2009 5:28:15 PM EST
FWIW From a contractor's point of view:

I dont' know the details of the loan. That being said:

I've worked a few of them. The owner's can make it how they want. A recent one ended up with granite slab countertops, brushed nickel accents/fixtures, new cabinets, paint. The one I'm on now is getting a brand new 2+ car garage. Hardwood floors, new water heater, furnace, cabinets, etc.

The sky is the limit, as long as you're willing to finance it and it will appraise.



Link Posted: 6/15/2009 5:31:01 PM EST
35 isnt enough. i converted a nice sized house that was 2 apts into one big house. no major problems, took out one wall, new drywall, carpet, roof, windows, etc etc. your basic complete remodel for 41k 8 years ago.
Link Posted: 6/15/2009 5:39:00 PM EST
Depending on how the market is around where you are, the seller may put 203k offers at the bottom of the pile.
Link Posted: 6/15/2009 5:57:20 PM EST
203k loans are a nightmare.

You are better off getting 3 credit cards, financing the upgrades yourself and reselling it for a profit.
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