All Forum Posts by: Brendan August

My dad owns a home in Pittsburgh that is too big for just him and needs a lot of work (roof, water heater, HVAC). He has spoken with a local investor that wants to purchase the property from him for 100k. My dad owes about 30k on it so he would walk away with about 70k and not have to deal with the stress and hassle of hiring contractors to fix the place up himself.

The homes on the street have been selling for 225k - 245k. The exact home next door just sold for 225k all fixed up (without central air)

I'm trying to convince my dad to fix up the property himself with the help of my uncle and with about 20k that I could invest.

The house needs at least 50-70k to get it retail ready and probably 30-40k to get it rental ready.

Ideally my dad would keep it as a rental property. However he does not have the extra money to cover any additional repairs. Would it make sense for him to take out a HELOC on the home to cover the rest of the renovations and then use the BRRRR strategy (minus the B) to pay off the HELOC, pay me back and use as a down payment on another property?

Or should my dad, my uncle and I work out a partnership to just flip the property and sell it retail. We are having a tough time figuring out the terms of this one though. My dad brings the house and money from the HELOC, my uncle does the work and I bring 20k - not sure how we go about splitting the profits?

Sorry for the long post but any advice would be great - even if it is just to sell it the investor for a 70k profit.

Thanks!

My dad owns a home in Pittsburgh that is too big for just him and needs a lot of work (roof, water heater, HVAC). He has spoken with a local investor that wants to purchase the property from him for 100k. My dad owes about 30k on it so he would walk away with about 70k and not have to deal with the stress and hassle of hiring contractors to fix the place up himself.

The homes on the street have been selling for 225k - 245k. The exact home next door just sold for 225k all fixed up (without central air)

I'm trying to convince my dad to fix up the property himself with the help of my uncle and with about 20k that I could invest.

The house needs at least 50-70k to get it retail ready and probably 30-40k to get it rental ready.

Ideally my dad would keep it as a rental property. However he does not have the extra money to cover any additional repairs. Would it make sense for him to take out a HELOC on the home to cover the rest of the renovations and then use the BRRRR strategy (minus the B) to pay off the HELOC, pay me back and use as a down payment on another property?

Or should my dad, my uncle and I work out a partnership to just flip the property and sell it retail. We are having a tough time figuring out the terms of this one though. My dad brings the house and money from the HELOC, my uncle does the work and I bring 20k - not sure how we go about splitting the profits?

Sorry for the long post but any advice would be great - even if it is just to sell it the investor for a 70k profit.

Thanks!

My dad owns a home in Pittsburgh that is too big for just him and needs a lot of work (roof, water heater, HVAC). He has spoken with a local investor that wants to purchase the property from him for 100k. My dad owes about 30k on it so he would walk away with about 70k and not have to deal with the stress and hassle of hiring contractors to fix the place up himself. 

The homes on the street have been selling for 225k - 245k. The exact home next door just sold for 225k all fixed up (without central air)

I'm trying to convince my dad to fix up the property himself with the help of my uncle and with about 20k that I could invest. 

The house needs at least 50-70k to get it retail ready and probably 30-40k to get it rental ready. 

Ideally my dad would keep it as a rental property. However he does not have the extra money to cover any additional repairs. Would it make sense for him to take out a HELOC on the home to cover the rest of the renovations and then use the BRRRR strategy (minus the B) to pay off the HELOC, pay me back and use as a down payment on another property?

Or should my dad, my uncle and I work out a partnership to just flip the property and sell it retail. We are having a tough time figuring out the terms of this one though. My dad brings the house and money from the HELOC, my uncle does the work and I bring 20k - not sure how we go about splitting the profits?

Sorry for the long post but any advice would be great - even if it is just to sell it the investor for a 70k profit. 

Thanks!

Hey everybody, I was just wondering if anybody has made use of the the CARES Act to withdraw money penalty free from their retirement accounts? I understand that you still have to pay taxes on the amount but you can spread this out over 3 years I believe.

I was thinking of doing this to use as a down payment on a rental property, rehabbing it and then hoping to refinance it to pay back my account.

I could also roll my 401k over into a self-directed account, but I think I would have to pay taxes on that immediately (I could be wrong) and just purchase and rehab the rental in from within my account?

Any advice or thoughts on this would be great, unfortunately my 401k is the only place I have enough money to use as a down payment or purchase a property with cash. I probably should've tried to make sure I was more liquid but the 401k is where the majority of my funds are.

Also does anybody have any recommendations for a good self-directed IRA provider?

Thanks!

Hey everybody, I was just wondering if anybody has made use of the the CARES Act to withdraw money penalty free from their retirement accounts? I understand that you still have to pay taxes on the amount but you can spread this out over 3 years I believe. 

I was thinking of doing this to use as a down payment on a rental property, rehabbing it and then hoping to refinance it to pay back my account. 

I could also roll my 401k over into a self-directed account, but I think I would have to pay taxes on that immediately (I could be wrong) and just purchase and rehab the rental in from within my account? 

Any advice or thoughts on this would be great, unfortunately my 401k is the only place I have enough money to use as a down payment or purchase a property with cash. I probably should've tried to make sure I was more liquid but the 401k is where the majority of my funds are. 

Thanks! 

Trevor, 

Thanks for your advice. Unfortunately I live in DC and am trying to handle this situation from here and it would be tough for him to move in with me down here. I agree that having him in the house during renovations is probably out of the question. 

I think the hard money loan would be the best route to take as I am confident the upgrades could easily bring the value up to around 150k. Similar properties on the street have been selling around that price and I think with about 20k in upgrades, especially a new roof, that we could get the property appraised and sold around that price. 

Just have to find a place for my dad to stay during renovations and convince him that this is probably the best route to take.

Thanks! 

This is my first post so forgive me if I make any mistakes but I am looking on a way to help my dad out. He currently lives in an aging home that needs a new roof and a number of other upgrades to get the home up to a condition that a bank might finance for a new buyer. I have included links to the home below. 

https://www.realtor.com/realestateandhomes-detail/3219-Pinehurst-Ave_Pittsburgh_PA_15216_M37134-36481

https://www.redfin.com/PA/Pittsburgh/3219-Pinehurst-Ave-15216/home/74771233#public-records

Some of the options I can think of:

1. He could get a hard money loan or a second mortgage on the house and have the improvements done and then put the home on the market. Properties in the neighborhood are selling at an extremely high volume, however he would still need to live in the home during the renovations and this might be tough. 

2. He could seek somebody who is buying properties with cash in any condition and then pay off his mortgage on the house and let them make the renovations. He could then use the remaining money for a down payment or for rent. 

3. If there was any way I could have this be my first investment property that would be great as I feel like it has a lot of potential, however I cannot figure out how to best set this up? I do not have enough available cash to compete with any offer a cash buyer could provide. Is there any creative way I could obtain the property and take out a hard money loan myself to have the work done and then resell the property myself? Any advice would be great. Thanks!