Rental, Rehab Financing
It seems that lower valued single family homes require Unique financing practices. The costs associated with conventional financing under $50k seem a bit excessive. I currently have a single family home under agreement and scheduled to close 5/6/11. Total purchase and rehab costs will be $24k with a ARV of $39k. I plan to hold this property as a rental for ten years. It will pull $625 per month in rental income. Owner finance is out of the question. My personal residence L.O.C. is maxed out. I will need approx. $13k to close and $11k for the rehab. Credit cards are a last resort (short term fix but not a long term fix). A goal is to pay off the financing with a ten year amortization. Input would be appreciated.
I have seen some NOO rehab loans..
Did I understand you were going live in the new place? nudge nudge
Summary: Originally I was hoping to just replace the glass pane. The plan was to install a new pane in the two (of five in front) broken windows and keep the wood sash and the appearance would remain consistent. These are wood double hung windows. Neither HD nor Lowes carries replacement panes. I took the existing windows out (the two sashes and vinyl track), then (carefully) removed the sash with the broken pane from the quite abused vinyl track, then got a quote from a local glass company. I saved service call fees (about $75) by taking the sash to their office for a (free) quote. So, the quote was $75 for the small one and $92 for the other - just pane replacement and installed in the sashes. In the end, I decided to replace all five front windows with new vinyl double hung windows, with grills, and half screens. The cost per window is/was $164 each for the three odd sizes, and $149 each for the other two. Yes the cost is much higher, but these windows will work/open much better in the new tracks and they will have screens (the old window screes were also junk and all needed replacement.)
Bottom line: the cost for replacing both broken panes in a double hung window is the same as the material cost for a brand new window... if the sashes are taken to the glass company. The net cost (material, time, travel cost and time) is actually much higher, and I would say that the net cost for replacing one broken pane in a double hung window is almost the same cost as just replacing the whole window with a new vinyl or wood replacement. [ Edited by ITBInvestor on Date 06/27/2010 ]