Hello all. My name is Michele and I’m very new to the world of real estate investing. I have my eye on my first piece of property (in Chicago/Cook County, IL) which I would like to buy, rehab and hold.
Ok…here’s my plan. I’m a 9-to-5er with very little savings. I’ve researched a couple of hard money lenders to finance the purchase of the property and the rehab cost. After the job is complete, I will refinance via a conventional loan. Using part of the equity to fund my next project.
The property will need a total gut rehab. I know I will need to get a big dumpster bin, permits for the electric, plumbing and HVAC work, as well as a permit for the roof and new back porch. I’m told I can be the general contractor on this because the property is only a 2flat.
So that means I will have to sub contract and supervise the jobs for all the needed trades for this job. My first question is, am I on the right track so far???
My next question is, because this will be a total gut rehab, I’m fairly sure the finished floor layout for each apartment will be different than it was when the building was first built. Will this be a problem in regards to the building inspectors? Or can I have the floor layout (safely) changed as I wish without any regards to the inspectors? Will I need to hire an architect and present blue prints to the county building people?
Once the roof, back porch, rough framing, electric, plumbing and HVAC work has been completed, I will have my carpentry crew come in and finish with the dry walling, painting, tile laying, and flooring.
Start (purchase/rehab/searching for tenants) to finish (refinance), I’m hoping this can all be accomplished in 3 month (give or take a day or two).
Does this plan make sense? Am I missing steps important to the success of my plan?
ANY ADVICE and/or GUIDANCE will be GREATLY APPRECIATED. Thanks one and all.