203k loans in Rodeo CA

It has been a little while since we did a 203k renovation loan in Rodeo but one was on Garretson Street and faced the old refinery. I thought at the time that what a terrible view this property had of a fence then a refinery... today that refinery is long gone and there is allot of newer homes built on that site.. who would have guessed. It did always bother me that the refineries were built on the water and took up all those amazing water views.

Our offices used to be in Rodeo at 25 Parker Avenue towards the water and right across from Ricky's Corner a little bar that also did lunch. It was convenient for sure.

We have done quite a few 203k loans in this area over the years. The 203k loan for renovating a 1-4 unit property is the FHA's primary program for remodeling or rejuvenating a home or small income units 2-4 that is. We had a five-plex once that they just couldn't get financing for and it was just sitting there for the longest time. This is when non-profits were able to purchase under the program and they bought this one as I recall and turned it into four units. That is what is important to learn from this story is that the property "after improved" must be 1-4 units. It can be more before as long as it is 1-4 afterwards.

There are lots of four unit buildings in nearly every city in the USA and many of them need repairs. If the borrower is living in one of the units they can even do a refinance and get the money to make the repairs. What is the big advantage to sellers, it allows them a larger pool of buyers. Maybe you have a listing of a six-plex and it isn't selling. That may be due to the "commercial" loan that is required for this property. Five and more units are considered "commercial property" and have different rules. Go to the city or county planning department and find out if you can turn it into a four unit building. In Berkeley it may be a little harder but talk to us we may be able to assist you. I have some clients in that market that continually increase the number of rental units in that area and would likely help you but putting on into production to allow you to take one out of production.

How about this one, we have a duplex in Pacifica CA that is one story and only half a block from the beach. Turn this into two townhouses and make some money. The client just wants about $400,000 "as is" and once you put the upper level your townhouses will have ocean views and likely after the $300,000 renovation you should have a $1,000,000, that means for you investors, a $300,000 investment could get you a 90-100% return on your money.

Mike Young

704-451-1599