All Forum Posts by: DJ Harris

Hey there @Hud Floyd

I was an 11B (infantry) in the army for 7 years as well as a volunteer firefighter, starting as a junior in 2006 and finally leaving the volunteer field in 2015. I also worked in a jail for 4.5 years, I feel like that’d be considered second response? Haha. I’m currently heading into my 4th year as a police officer in Pittsburgh (3rd dept though). After dedicating all my adulthood to the public safety side of things, I’m now focusing on and trying to hustle my way to building my own real estate portfolio.

I’ve realized this is what I need to do to finally grow a beard 😂. Congratulations on your success, your achievements are truly inspirational. Stay safe out there

@Julio Velazquez

I would say on a subject too, the sellers to target are those facing foreclosure. Paying a normal conventional mortgage along with giving them profit is significantly lowering your margins for you to make enough on cash flow especially after considering initial repairs and cap ex. Those facing foreclosure benefit by avoiding the foreclosure. Foreclosures will be detrimental to them rebuilding to buy or event rent a home in the future. If you’re willing and able to, offer them enough cash where you think it’ll benefit them in moving forward, i.e. 1st months and security deposit on a rental. Just be aware of the amount that you may have to pay the bank to bring the payment up to date.

This is obviously one of many ways.

Hey BP members,

I’m currently speaking with two different property owners- Seller #1, on board with seller financing...Seller #2, on the verge, likes the idea but seems skeptic.  
I feel confident on how owner financing works, but what I’m trying to have in a row before anything is officially done is a few different things.
    
Personally for Seller #1, I'd prefer to wholesale the property to cash investors that I know who invest in that area due to needing full rehab and low rents. For Seller #2, I'd like to BRRRR the property. Is combining seller financing and a loan for rehab a bad idea? I have not utilized a hard money lender before but am open to seeking that route. (Obviously If the numbers say it's a good idea).

If the properties are bought via seller financing, I’d like to protect both buyer and seller, would a title company suffice or should I absolutely have an additional lawyer involved? 

My location is Pittsburgh PA. 

@Kris L.

It's a 30yr, taxes are about $3k. I can't remember off hand what the insurance was but it wasn't much at all. I also did zero down due to the VA loan, so that didn't exactly help my monthly rate.

@Joe M.

Upper east side, right near Walczak park. It’s a 3/1, finished basement, 1.5 car garage, 1/2 acre with the large backyard fully fenced in and a large back deck. 

@Jeremy Taggart I agree, I'm leaning more towards selling, as you said, due to negative cash flow. There isn't enough room for cap-ex, and managing 1 rental two hours away doesn't seem ideal. If I re-fi, I'm sure the mortgage will go up because there is no PMI with a VA loan, which would cause more negative.

The house is in Erie, and I now work in downtown PGH. I see you’re an agent in PGH, we’ll have to connect as I search for the next property, if you’re up for that. 

Thanks for the response! 

Hey BP,

I currently own my own home with a VA home loan but have only owned it since Dec. 2018. I recently got a new job two hours from the house. The property was valued before at around $94k and I purchased for $83k. I'm torn on what I should do...

A) Seek the possibility of refinancing in order to rent it out. (I know this depends on if I’m even able to do so).

Quick numbers-

Mortgage- $789

Rent- $1000/mo

......OR.....

B) Put the property up for sale, hope to break even and purchase something else closer to my new job.

What is your opinion? Maybe a related experience? Or different idea?

Thanks in advance!

If you have any equity in your home you can look at utilizing that to acquire rentals. 20% of $40k is only $8k. But really it depends on what you’re looking to do to do rental wise. As in looking to do it full time one day, or just a side hustle to supplement your current income, pad your retirement, or whatever you’re reasoning is. 

Hey Mike, 

There's plenty of ways to get started but  at least we can start with...do you currently (or have you in the past) own a home?