All Forum Posts by: Jared McCullough

Should have just bought Bitcoin at beginning of year. Wouldn't have had to do anything. That aside in the real estate world unfortunately my guess would be that is the most realistic option unless you happened upon some significant investment opportunity in the development world.

I'm not sure I buy this statement. Where is this exceptional cost of CapEx that you are anticipating.

Any house is going to need the same set of CapEx over the course of ownership it just then becomes when those replacement costs arise. You may buy a 1990's build to be honest that may be on its last leg at this point as most standard purposes items that have publicized shelf life (i.e. Hot water tank, shingles, furnace) are reaching their end of life.

Inversely a 1960's build that you get for sub $50,000 may have already been through 1 or 2 replacements of these items. I buy plenty of older properties that have newer furnaces, roofs, etc.. that are only a few years old.

Not trying to stir the pot but more so just trying to gain a better understanding of what CapEx it is you are referencing.

In my opinion the only problem you get with low dollar investing is the pain in the a** people you have to deal with. We get these older houses to respectable condition, command decent rents out of it, the majority of the time my struggles are just with the lower class of tenants that you have to accept to play this game.

How ironic was I literally just saw they dropped the largest complex in the area $500,000 and its contingent then I come across your post not 5 minutes later. Here is a 62 unit with what they are saying is $375,000 gross that my guess would be is selling for under $1MM.

Unfortunately I missed it though trying to scrap together funding would have been difficult.

https://www.realtor.com/reales...

How are you guys making out for those that have properties in New Castle? The price per quality is definitely there but I have not bought yet because it seems as though there was like a mass exodus in the last couple years. I have never seen so many decent houses come up for so cheap.

Would love to get some practical real world experience from those that own properties there as it's only 30 mins from my house.

Moises,

I greatly appreciate the reply. Any chance you could take the example above and help me understand using my exact scenario?

Jared

You seem like you are on the right path. I wouldn't worry to much about the inspection if a Section 8 inspector has been through. Home inspections many times a subpar at best anyway I would say if you had a contractor and the Section 8 inspector through and someone is in there and willing to stay and pay a rent that you are ok with just get the deal done and move forward. 

I would say the only reason you would want to close ASAP (i.e. though 30 days really isn't that long) would be to get the deed recorded and to begin the refinance so you can buy the next. That being said if it is your first take things slow and methodical to make sure you feel comfortable you covered your bases. 

You could have the tenant commit to a new lease just make sure it is dated after settlement.

I am currently in a situation where my last refinance put me in a position where I have $10,000 in leftover capital and was able to purchase (3) properties in cash (i.e. that I plan to borrow against for future acquisitions).

My lender seems to think it would be in my best interest to use these (3) properties as collateral to obtain a Line of Credit but to be honest I am a little confused as to why. Hoping someone on here may be able to explain a little better.

Lets assume after appraisals based on the LTV they are willing to give me $100,000 (i.e. arbitrary number to make things simple) either in a Line of Credit or as a bundled refinance.

If my intent is to use this money to purchase say another (2) houses at $50,000 OTD a piece or a grand total of the $100,000 I plan to borrow.

Using the LOC Model I know have my Line of Credit maxed out and (2) houses in the clear. This is what I get confused with and need some guidance:

1. Do I leave the line of credit open and take out an additional Line of Credit or Refinance against the (2) new properties and use that money to purchase additional properties?

2. Do I take refinances out on the new properties to payback the line of credit now leaving me with a new refinance and my existing line of credit back at $100,000 to purchase new properties?

The other option is I refinance these (3) homes for again the theoretical value of $100,000. I then take that $100,000 and buy my (2) new homes. I then take another refinance out against these (2) new homes to reestablish my funds for purchasing properties.

To be honest I am confused how one is better than the other as from the way I see it your essentially doing the same thing.

Jared

Keep shopping around. I am not to far away from you near Pittsburgh and I have (2) banks that I source $50,000 refinances from regularly. Before COVID the one wasn't even requiring appraisals but instead "estimations". Lol I probably got (2) or (3) $50,000 loans on properities that would have actually appraised for $40,000 to $50,000 (i.e. 100%+ LTV).

I will agree with the sentiment above thought that many have become a lot more rigorous in there loan approval process. 

It is my understanding that an eviction can't be done based on non-payment at the moment do to the states Eviction Moratorium which has been extended until August 31st. Someone please correct me if I am wrong because I have one person I would love to get out ASAP.

https://www.inquirer.com/news/...

We have (2) tenants currently not paying. One of which hasn't since march. We were going to start looking into this program but figured I would stop in here and see if anyone else has started the application process and has any pointers.