Hello!
I have an opportunity to purchase a property listed as a 2/1; I've noticed that the most recently sold property comps have a preference of 3/1 - 3/2 ranging within the same square footage. After factoring the ARV, I will have a good return on my investment. Is there anything else missing that I would need to check before pulling the trigger on converting this 2/1 into a 3/1? The LTV on this deal is 65%.
Replies
Will,
E-mail me your contact info along with the project info; if it checks out we can JV with you.
Paul
Paul@premierguidance.com
Thanks, I should have mention that I'm also the GC on the project, in the construction phase were good to go, I have helped other investors/homeowners to flip/rehab for many years, zoning is ok, never realized on the investor side the additional stress added, thanks for the advice will check to see if there’s a planning board for approval, property is located in Hillside New Jersey.
Ibrahim Hughes said:
Where's the property? Anytime you change the layout of the interior you will likely require architectural plans at a minimum and approval by a planning board as the worst-case scenario. Also you will want to look at the electric and heating load. Is the 3rd bedroom going to be on the same floor as the other 2 or will it be 1 floor up in the attic. Can the current heating system support the extra bedroom, especially if it is one floor up? If you're considering adding an add'l bathroom as well, can the plumbing system (primarily the size of supply lines and water heater) support the extra bathroom? A licensed contractor who really knows his plumbing and electric should be able to answer these questions for you.