Recent 203K loan updates
So I have 3 clients working on the 203K application process. The first is under contract to buy a house in Central Denver. They will be remodeling the kitchen, redoing the floors, and new windows. They have a hold up right now because the property has an easement issue. So as soon as we get past this part of the negotiation they will be moving to get an appraisal and close on the house.
The second, is selling their current home in the Highlands neighborhood. While under contract to buy their second home to fix up. This one will change the floor plan with moving a few walls, remodeling the kitchen and adding a bath. I am really excited to see the end results of their remodel because I think it will turn out great.
Finally, my folks in the Berkeley neighborhood. They have a home with a mother-in-law apartment. With their 203K loan in Denver, they are going to remodel the kitchen in the mother-in-law, and their kitchen as well. This will work well for them because not only will it increase the value of their home. But it will make renting their mother-in-law apartment easier, but they will be able to increase the rent accordingly. So down the road their cap rate will be higher, and return on investment will be increased.
So right now I am seeing an increase in folks wanting to refinance their current home and remodel it. Given most people aren’t trying to sell right now, refinancing with the 203K is a great idea. Because not only will it increase your value, but allow you to finance the costs with a tax-deductible option. So then if you plan on selling later. this should allow you to have less to do to prepare to sell down the road.