All Forum Posts by: Aaron Osgood

I hired a GC to run my SF flip and he turned out to be a disaster. Essentially bait and switched me on his estimate. I have paid everything according to the contract but he is threatening to put a mechanics lien on the money he thinks I owe him. Only about 5k. I'm in PA...any advice?

Ryan,

Thanks for the follow up. I strayed a little from my plan because I couldn't get the banks to go with a 5% down multifamily deal. They all wanted 15%+.  The areas where I could have afforded a 15% DP were a little too sketchy for my fiance. 

I ended up finding a nice fixer upper in my immediate area that I went FHA. Owner surrendered some closing costs as well so I was able to use those savings directly into the house. We are happy in our house even though we are not getting any rental income from it. We will look to refi or sell next year and move into a duplex/triplex in a nicer area with the proceeds.

Good luck!

Hello all. I had a great meet-up last night with fellow BP'ers in the area and it seemed the consensus for a first flip is find something "easy". I think i have found one that has comps in the $200,000+ range and i can get for 140's. I'm trying to find ways to finance it unconventionally because I don't want to hold onto it for 6+ months. Here are some details.

Sales Price: let's say 145k

Closing Cost: 3,000 (i'm rolling in my 3% realtor commission to closing costs as well)

Renovation needed: 15k

RE Tax: 450/month

Insurance: 150/month guess

ARV: $205,000. A house 2 blocks away with same floorplan and sq footage sold at this price in 5 days.

Here is the tricky part. I have about 15k cash to play with. Would a private lender be willing to take that 15k as a down payment on a $145k loan? Is an interest only, 10%, loan appropriate? How else can i structure it to make it attractive?

I see monthly payments playing out this way.

Interest from loan: $1,450

Tax-$450

Insurance-$150

Utilities: $50

Total: $2,100 a month * 3 months to flip= 6600 carrying costs

So in the end:

$205,000 sales price

less commission: $12,300

less closing cost: $5,000

less seller assist: $3,000

Total: 184700

Profit: $1847,00-$169,600= $15,100

Obviously not a killer deal but something to get started and experience. The renovations include adding carpet and finishing a dry, w. sump pump basement.

Any advice here is tremendously appreciated.

Aaron

This is an old thread but I wanted to see if anyone had any good verbiage for these letters?

Looks like an excellent event. Thanks for sharing. Sadly, don't think i'll be able to make it but it would be awesome if you gave us a little review after!

Enjoy

Aaron

@Steuart Wright I signed up for the workshop online (it's free). Just go to NACA.com and under the Homebuyer section click on Workshop. Saturday 9am.

Hope to see you there.

Aaron

Thank you Lucas for the very informative response! I'll be sure to keep everyone updated. Headed to a NACA workshop on Saturday to see what that is about as well. I'm excited to own and rent in Philly.

Aaron

Does anyone in the Philadelphia region know of banks that do not require 20% for owner occupy multi family? I've heard 3rd Fed is a good one but would love to shop around.

Would love BP expert advice here. I'm a little worried about prequalifying. Only have $50 a month debt but income of 3,500 a month. How can i get into a $250,000 triplex? I have about 20-25k of usable capital.

Hey Sean, welcome to BP. Like you I'm a newbie in Philly. It's a fun area to be in as we've seen great growth it many areas.

Where is the REIA meeting Thursday? Would be something I am interested in.

Aaron

Thanks for all of the replies.

Ugochukwu, thanks for sharing about the NACA. Looks like good option for people looking to live in their investment properties for the long haul and with great terms. For those of you unfamiliar with it check out:

https://www.naca.com/nacaweb/purchase/nacaQualificationGuideLines.pdf

Some of the areas im looking in Philly are Passyunk Square, Graduate Hospital, and Queen Village. Not sure why but I'm more comfortable going South of market rather than north. Although being closer to Pat's could be dangerous...

I'm also looking in the suburbs. I really like Conshohocken and think it will be a growing town. Some other suburb towns I'm lookign at are Ardmore, Media/Springfield, Bensalem/Doylestown. I like to stay close to the Septa.

Aaron