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Got it. Thank you!
Okay good to know. I think I might have caught a rumor rather than a fact based policy. Thanks a lot guys!
Thank you so much for your insights! This process seems scary, but I think I’d like to give it a try. I’ve seen 3 properties so far with the potential for this type of deal. I need to start by finding the right contractor and an appraiser. Thank you for being so kind and sharing your experiences. And by the way, good luck with the house! You have already come so far and have discovered so much! I hope you get exactly what you want 🙂
This is great, thanks Tim! So, do you think this order of operations sounds about right?
1) Get renovation estimates
2) Get city approval
3) Get “before” and “after renovation” appraisals
4) Get offer letter
5) Make offer
6) If accepted, begin normal closing procedure through the HAND department
I just want to make sure I’m explaining it right. Thanks!
That’s so inspiring to hear. Thank you for sharing! This could make a huge difference for me. I wonder, if I could get renovation estimates, as well as before and after appraisals, and supply all of this information when requesting the offer letter. I’m looking forward to hearing from Tim whether or not this is feasible. I don’t know how many sellers would be accommodating, and it sounds a tad bit expensive, but for the right opportunity it may be well worth it!
Excellent, thank you so much! I can certainly wait. Thank you for looking into it.
Thank you for your response! I’m sorry I’m a total newb about all this stuff, I’d like to make sure that I understand. Using the example I presented in my original question:
I would need to get two appraisals – one “as is” appraisal, and one “after renovation”. I could get approved for up to 110% of “after renovation” appraised value. But as to affordability, NACA would not then consider the expected rental income from the 3rd unit when factoring my affordability.
In other words, if I could not afford the property as a 2 unit, I would not be able to use this process to move myself within the margins of affordability by using the expected rental income from the newly added unit, right?
Thank you for addressing my question!
Wow, interesting. Thanks for sharing!
Excellent, I will check the property taxes.