All Forum Posts by: Dan Porter

Good afternoon all,

Looking for some quick advice as this is my first REFI and I am having alot of doubts. I bought this property in college, renovated it while renting out the spare rooms and no use the property as a long term rental. I would like to pull the equity so I can continue building my portfolio. However I am having doubts- rates are so high right now I will be making under $100/month in cash flow. My cash out will be 66k, which is very exciting, but I will need a 16% return to justify the loss in cashflow. Below are some additional numbers:

Previous loan:

88k

2.75% int

$950/month cash flow

New loan:
168k

7.625% int

100/month cash flow

Please let me know what you think of this.. I can REFI when rates get low again- but there is no telling how long that will be and it costs 5-10k to refi.. Any advice is greatly appreciated!!

Hello everyone and thank you in advance! I am long time BP listener (2017), and am looking at what would be my first flip. I have ran the numbers and am confident that the project would have great profit margins- assuming that my ARV is correct that is. I am having trouble setting an ARV because the house was built in 1966, and the layout feels awkward. The rooms flow well, but there are 4-5 steps going down to the dining room/ kitchen, another 4-5 down to the basement, and 4-5 going up to the second floor from the entry way, and 4-5 going up to the 4th bedroom. So essentially there are 5 different "levels" in this house.

I currently own a split level LTR, and am considering this property, but I was wondering if anyone could give me insight as to how this layout would effect the ARV? should I factor an additional 15% into my offer? 25%?

All help and advise is very appreciated!

 Alright, I hadn't thought of them doing it that way- but that makes sense too. Thank you for your input!

Just wondering if anyone has experience with sheriff sales in Allegheny County? The sheriff sale listing looks like the below image as an example (I am not interested in this specific property). 

Can someone help decipher this? If I were to be the winning bidder on this property, then I would pay the bid amount + $44,146.76? Is that amount all due taxes and liens on the property? Or should I consult an attorney before purchasing a property? What should I expect to pay for an attorney looking into this for me? What do the checked/unchecked boxes in the top right of the listing? Are the dates listed below payments that the defendant is required to make? 

All comments/help is greatly appreciated!! This is a new area of investing for me, but I would like to get into sheriff sales for the extra margin when doing flips/BRRRs. Thank you much!

I think there are too many people looking in the same place to live. The US is mostly a capitalist economy. If you aren't providing the most value, why do you deserve to live in the best place. Most of the midwest, northern states, and central states are still very affordable on most budgets.

As you know- a large component of mortgage rates is the fed rate. So in my opinion, the future of rates depends on what the effects of the quantitative tightening that we are currently seeing is. If the market begins to hurt the fed may ease off or even lower the reserve rate. Like Jay said above- below 4% is a rare occurrence that only happens if the fed is doing some serious QE or if no one is buying properties, either way its not a great thing to see. 

I just moved to the Pittsburgh area and I am looking to do some networking with other investors. Unfortunately I am out of town tomorrow- but I joined your Facebook group and I will be keeping an eye out for next months event! 

I am interested! Just shot you a PM.

Thank you everyone for the replies!!! I will take them all into consideration. Although it is unlikely that I will use it as a student rental due to the fact that I could purchase a cheaper home and rent it for the same as a student rental (Several colleges in the area, so there is alot of demand for student housing). I appreciate the help!!