HOPEFULLY Got my first deal!!! Question about money for rehab

Found SFH, got it under contract for

ARV 175
Repairs 40 (50 add 10K cushion)

Can I get a traditional loan for price of house AND rehab costs? I would rather go that route, or is HML a better option?

Funny thing happened. Yesterday I went to look at the house, and there was a wooded lot, went there today to sign the contract, and there were bulldozers knocking down the trees. The agent said they’re going to build a brand new house next door!! If if follows the trend, the house will be AT LEAST $220K. Will that boost my ARV a little? 10K or so? ;D

I need a pre-qual letter in 7 days, and inspection in 14 days. Hope this works out! Traditional or HML?


Robert Keyosaki,

         Looks like you have a deal going RIGHT ON!!! Are you looking to buy and hold or fix and flip how is the market out there! Do you know any HML's? What all do you think the property needs that is going to cost 40k! I could roof to furnace a house for 15k (then again I am Cheap)

Thanks REO! I actually want to buy and hold because the area is on the rise, and there’s plenty of new construction going on mixed with old run down houses on the same block. (Atlanta area) Lots of wooded area being bought and built on.

It’s mostly interior work. Needs to be TOTALLY overhauled… everything. Outside is VERY good condition. 6 yr old roof. Only light cosmetics needed. It’s a 3/1, so I don’t know if $40K is too much? Any helpful ideas on costs on a 3/1 total interior overhaul. 1200 SF?

If you are going to rent it go cheap you should get carpet at 4.00 per yard plus pad. Get good pad that is what makes the carpet!

white paint 10 gallons 100.00

cabnets un stained 1,000.00

bathroom sink and bowl 100.00

tile floor for avarage size bath and kitchen 1,500

furnace unit 2,500

misc. 2,000.00

Labor 4,000.00

sitting around watching someone else do the work PRICELESS

there are somethings money can’t buy for everything else theres mastercard!!!

I’d be careful of those prices !!

Call a local contractor to take a look at this house with you. Nothing says you have to use the contractor. Heck, I’ve given out hundreds of free prices to people - often not wanting the job myself. I figure as a consolation prize, I will assist the owners as much as I can as long as they are nice to work with.

Good luck, and watch those prices !!

Ken Dixon
Mandix Builders, LLC
Ft. Thomas, KY

Ken how many houses you own???

I can give you addresses where I get those price’s!!!

Well, at one time we owned 27 units - from single family to triplexes. We’ve cut back in recent years but are on the hunt for more. I am an architect and have been a builder and remodeler for the last five years. That’s why I said what I did about the pricing. I don’t build the cheapest, but even cheap in my market is above those prices. Sorry.