Rehab Progress on First Purchase
It's been almost 6 weeks from my purchase, and as planned, the renovations are set to be complete today. I've chosen to go with a local property management group and secured insurance for the property. For the insurance, I am getting a 500k umbrella policy with a housing value of 150k (about 15k above what I expect my appraisal will come out to be) for about $900/year. This is a bit more expensive than I initially budgeted for in my calculations, and is almost identical price to the property that fell through previously (duplex in Pittsburgh). Here are some update photos. It is coming along nicely!
In regard to next steps.
We will get all utilities accounts set up and I'll be having an inspection done on the final product (regular, termites, and radon inspections). Once those are complete and any issues addressed, the property management group will begin finding tenants for the property and I'll begin cash flowing!
I have been investigating various ways to get my money back out of this deal as quickly as possible, ideally before the seasoning period (generally 6 months after purchase). There are some interesting options, such as delayed financing. Most of them look like they'll be much more expensive than they'll be worth and also are a bit more risk. With today's cooling off market, I'd like to stay as risk averse as possible. I will make a separate blog post on the options available in the future.
Most likely, I'll just cash flow without any mortgage payment (i.e. double the monthly cash in my case) until the 6 months are up, at which point I'll finance the property. I'm already a few months into the seasoning, and it takes a while to establish a relationship with a banker and setup the finance anyway, so at the end of the day I won't be waiting much longer than I originally anticipated.