All Forum Posts by: Aaron Royce

@Alex Deacon thanks for the input. The more I look into this, I think I'm coming to the same conclusion that making it cashflow may be tough. I'm getting a few more numbers to really figure out what the total costs would be. I've gotten several varied responses so far. 

On another note, I'd love to figure out how to monetize this lot without having to do construction. I'm open to creative ideas, and partnering with someone local, so if you have any ideas (parking, cell tower, storage, etc...) I'd love to hear them!

Thanks for the offer Wayne! That's one piece I have in place already. I do appreciate you reaching out. 

Thanks Alex. DM sent.

Hi Travis! I am an active investor and agent in the area. I specialize in working with newer home buyers/investors. I have flipped a number of homes in the area, own short and long-term rentals, and we hack our own home too. If I can be of any assistance to you guys, I'd be happy to meet with you and take a look at the properties you are interested in and help you estimate what it's going to take to renovate. Feel free to direct message me and we can chat.

Hi, anyone do any ground-up construction in Pittsburgh? (or can introduce me to someone who has) I have vacant land in north Pittsburgh that is zoned for Multi-family and I'm looking for referrals to contractors, architects, etc...  I would also appreciate any advice or suggestions. I own a duplex next door to the vacant land, and I'm an out of state investor.

I really appreciate it in advance!

Try looking for non-conforming multi-family, like houses with unfinished basements (area dependant), then puchase the home with FHA, then finish the basement and either move there yourself and rent out the main floor, or visa-versa. That's how we started hacking our home. We also have land, so we additional set up a tiny house on wheels and rent that out as a short term rental (STR). you don't have to own a 2, 3 or 4-plex to hack it, you need to look at the possibilities where other don't. Good luck!!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $137,500
Cash invested: $40,000

First BRRRR, had to leave about $40k capital when we refinanced.

What made you interested in investing in this type of deal?

We had flipped a house already and we were getting this one at $.50 on the dollar, so it seemed like a good candidate to BRRRR and I wanted to learn how to do it.

How did you find this deal and how did you negotiate it?

We purchased it from a wholesaler

How did you finance this deal?

Hard money to purchase and fix it up. Then conventional financing to hold.

How did you add value to the deal?

Full renovation

Pittsburgh, PA investors! Bring your innovative ideas and let's monetize a vacant lot I own in north Pittsburgh area together.

I have a vacant lot just to the north of my duplex at 2534 Perrysville Ave, and I'm looking for a local JV partner to bring a proposal and plan for how to generate income from this lot.

Please research the lot based on the address above. I'm expecting that you know the area and know how to look up zoning in the city.

Terms of the JV are totally negotiable, and I'm excited to hear your ideas! Let's do this!!
-Aaron

Investment Info:

Single-family residence fix & flip investment in Kirkland.

Purchase price: $747,000
Cash invested: $149,605
Sale price: $2,329,000

This project was a large addition to a old single level home in a great neighborhood. Home was 1600 sf, and we added 1200+ sf all on one level, and went for high-end finishes.

What made you interested in investing in this type of deal?

I sat out most of 2020, because I was uncertain what was going on with housing and the economy. But as I watched others doing well and realized the market was continuing to grow stronger, I started actively looking for a deal.

How did you find this deal and how did you negotiate it?

Another investor, I had known for years, brought the deal to me and he needed a money partner. He already had it under contract. It was brought to him by another colleague of ours as a wholesale deal.

How did you finance this deal?

hard money + personal HELOC

How did you add value to the deal?

We took an old run down house in one of the best neighborhoods and added 1200 sf to it and completely redid the layout to make it amazing! Also added covered outdoor entertaining space.

What was the outcome?

We budgeted $250k for the addition and updates, but ended up spending over $450k. Yes $200k over budget and 4 months late! BUT, the market kept moving up, and we had the best product on the market in the area, so we shot for the moon and Listed for $2,279,000. We were not looking for a bidding war, just one solid offer, and we got it! $50k over asking, $150k non-refundable AND RELEASED earnest money, and a guaranteed close. Net profit over $800k split with a partner. Home run.

Lessons learned? Challenges?

Don't try to get discounted engineering and architecture for a high end project. Use the best, and you won't have so many delays with the city. Normally time is money, but in this type of market our delays paid off. Working with cities during Covid is hard, so be understanding with people, BUT DON'T just "trust the system". Follow up - follow up - follow up, if you want your stuff to get worked on. If you are asked to make changes to drawings, ask if they can red-line it for you = saved time.

Investment Info:

Single-family residence fix & flip investment in Kirkland.

Purchase price: $747,000
Cash invested: $149,605
Sale price: $2,329,000

UPDATED: This project was a large addition to a single level home in a great neighborhood. Home was 1600 sf, and we added 1200+ sf all on one level. We budgeted $250k for the addition and updates, but ended up spending over $450k. Yes $200k over budget and 4 months late! BUT, the market kept moving up, and we had the best product on the market in the area, so we shot for the moon and Listed for $2,279,000. We were not looking for a bidding war, just one solid offer, and we got it! $50k over asking, $150k non-refundable AND RELEASED earnest money, and a guaranteed close.

Net profit over $800k split with a partner. Home run.

What made you interested in investing in this type of deal?

I sat out most of 2020, because I was uncertain what was going on with housing and the economy. But as I watched others doing well and realized the market was continuing to grow stronger, I started actively looking for a deal.

How did you find this deal and how did you negotiate it?

Another investor, I had known for years, brought the deal to me and he needed a money partner. He already had it under contract. It was brought to him by another colleague of ours as a wholesale deal.

How did you finance this deal?

hard money + personal HELOC

How did you add value to the deal?

We took an old run down house in one of the best neighborhoods and added 1200 sf to it and completely redid the layout to make it amazing! Also added covered outdoor entertaining space.

Lessons learned? Challenges?

Don't try to get discounted engineering and architecture for a high end project. Use the best, and you won't have so many delays with the city. Normally time is money, but in this type of market our delays paid off. Working with cities during Covid is hard, so be understanding with people, BUT DON'T just "trust the system". Follow up - follow up - follow up, if you want your stuff to get worked on. If you are asked to make changes to drawings, ask if they can red-line it for you = saved time.