Buying My first investment property...

No, you have to get quotes from contractors and that’s what is put into an escrow account. If you do the work and it passes inspection then the supplies cost gets refunded to you and the labor cost comes off the mortgage amount.

Not trying to argue but where did that information come from? I sold a project last year (financed through M&T) and they were pretty clear about the owners not being allowed to perform the work themselves. Again, not arguing but that statement seems “risky” from a bank’s perspective as they cannot verify the level of skill and ability of the owner / renovator to perform satisfactory work on a project the bank is loaning based on a completed value and not current value. What is the owner is a total nincompoop and couldn’t hang a piece of trim if their life depended on it? I don’t see how the average Joe (not you Joe P) has a grasp of all the local building codes and what it takes for them to pass inspection. Not to mention you’re bringing out contractors who invest alot of their time (with no benefit) to write up an estimate so you can get financing for a project they’ll never work on.

Yeah I’ve been told with a 203K that I can’t perform the work either.

  1. the inspection has nothing to do with the bank. For you only and also helps to discover issues prior to appraisal.
  2. 203k loans are tricky. Google Paul Leisure and he may be able to give you tips. I can use him as a resource to answer if you are not comfortable asking.

I put an offer on a house today but not sure if I got it or not but I’m gonna PM you for your info for home inspections.

How crazy is the housing Market right now. I feel like I shouldn’t have already put an offer on the house today since I only got approved yesterday. I literally put an offer on the first double I looked at… ugh

Everything is a risk, the 203k plan is an insurance policy backed by the government. Also, you always get quotes from more than one place anyways, so what’s the difference?

https://hudgov.prod.parature.com/link/portal/57345/57355/Article/8583/What-is-a-Rehabilitation-Self-Help-Agreement

"The Mortgagee must also verify and document that the borrower is either a licensed general contractor or can document experience in completing rehabilitation projects and ensure the borrower demonstrates the necessary expertise and experience to perform the specific repair competently and timely. "

I don’t think the bulk of people trying to take advantage of this potential loophole would qualify and id be curious what “proof” is required to be considered capable.

Very few 203ks will let you complete work with out permits and most permits require a licensed contractor in that field of repair

Actually homeowners can file their own permits but they must pass legit inspections. If there’s structural work, they still need stamped blueprints. You can do just about anything to your house as long as it’s within the town code and follows the building departments guidelines.

I guess i was referring more to plumbing and electrical.

They can do that too. As long as it passes inspection.

I know the tonawandas, grand island and kenmore do not allow this and thats unfortunately where my properties are

Should be signing purchase papers within the next couple days.

Nice!!!

I’m pre-approved, just need to find one I like that i’m ok with living in for a little while lol

You’re not trying to do something weird with a loan are you :lol:

:oj: Yep, but hopefully it will be a good smart investment, at least I can fix most things for the property.

So you purchased a home :lol:

Not yet. But I’m approved and I can start looking.

Well, finally closed on this thing Wednesday. Takes a load off my mind. Seller turned out to be a total fucktard and delayed this thing with his BS for almost 2 months putting closing less than a week before Christmas…exactly where I didnt want it to be.
I had planned on cleaning up, patching and painting walls, and doing all the things that are awesome when the place is completely empty. The tennant was happy to clean up, but that’s not their responsibility.
Looks like I have a good tenant for this. Mother, two daughters, and a small child. I think they’re going to take care of it and cause little to no trouble.
Wish me luck.

I did my own roof. Pulled the permit from Amherst, Amherst inspector just requested I take pictures of the water barrier before I put the shingles down since I was doing over the weekend when he wasn’t working and then he came out an inspected the finished roof on Monday. No licensed contract number was ever provided.