All Forum Posts by: Andrew Medici

@Jamie Dietz Thanks! I appreciate the offer. I had the great benefit, and honor, of living in Pittsburgh for about 7 years, so I am pretty familiar with the area and with the surrounding boros.

@Account Closed Those are good guesses! But no, the property is not in any of those. But the neighborhood is probably only slightly better. The price is low because its off market, and the owner has long since given up. He simply shut down the property and locked the door, but now he needs to unload. The value of the building is substantially higher, but it needs some serious love.

Also, it looks like i am going with a personal loan to cover it. So I will let you all know how that turns out.

Hey everyone! So I have a small issue. I found a good deal. essentially an 8 unit apartment building near pittsburgh. I can buy it for about 40k and it will take about 40 or 45 in repairs to bring it to where I want to. But I am struggling to find a lender that will consider a loan that small for a building with 5+ units. I wanted to know of anyone can point me in the right direction? I am alternatively pursuing a personal loan but would rather finance with the commercial investment loan. Down payments are not a problem, I just feel like I found a great deal but it's too small for most lenders. Any thoughts?

@Ryan Murdock Do you use a local lender for that or a national lender? Also if i understand what you are saying, if you get the property for a good deal (lower than the total value) that counts toward the LTV ratio?

Hey Everyone, I was just informed by my Wells Fargo guy that they are no longer doing renovation loans (as of June apparently). Are there any other major lenders that still do that type of loan? And I don't mean like 203k stuff, just a loan that covers the acquisition of the property with the additional loan to finance renovations. I am going to have to find someone new in the next week or two.

Thanks everyone! This is all very helpful. @Stephanie P. the are asking $190k for 5 units with a 3,300 monthly rent total. Which is perhaps just a touch conservative but in range. I have been doing calculations but honestly it might not be a good deal (I am still trying to work out what would be in the commercial loan space).

@Johnny Wahba I would definitely refinance into something new. Hopefully by that time i would have added to my overall portfolio size too, which would hopefully give me options. I feel like you have some thoughts to share?

And is there a difference between using a commercial lender and a portfolio lender in this regard or does it not matter much? Does using a mortgage broker help?

@Chinmay J. So its not so much the down payment that bothers me (I can cover that) its the amortization which eats away at the cash flow. On a standard commercial that @John Baughman spoke of it would be 20, and you mention 30. I assume the 30-year lowers the overall principal and interest paid every month? 

Hey everyone! I wanted to ask the group a question that has been baffling me. You see, I have been looking for a small multifamily in Pittsburgh. I am familiar with the different financing vehicles involved and was set on something in the 2-3 units range. However I stumbled upon a five-unit property, which puts it out of range for residential conforming loans. Is there any way to get an idea of what the financing would look like and what the debt service would be on the property? I don't really want to waste time on it if it doesn't work for me but I am intrigued. 

Any thoughts on how to estimate debt service on this type of loan? Or any Pittsburgh-specific resources (or people) out there I can have a more casual conversation with about this before I get too serious?

@Justin Riapos Honestly at first I was still learning, and I live in Washington, D.C., so I was worried about making a mistake. But over time I learned a lot about the process, built a team on the ground and got comfortable making offers. I made several but so far haven't been able to come to a deal. Part of that is my fault, since I do feel like I got greedy or asked too much. Other times i was just too slow or couldn't offer the seller what they wanted.

But I am pretty confident that I will get something under contract after my trip up there this month. And while my wife is on board, at least tentatively, i think she needs to actually see it in action to appreciate.