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All Forum Posts by: Jared McCullough

Jared McCullough has started 19 posts and replied 118 times.

Originally posted by @Mark Fries:

@Ryan Hazelwood

52 houses, all old, lacking proper maintenance and slightly beat up. Cash cows. 

Lol favorite post I have seen in a while. Hope one day to be doing this good.

I just turned 30. I own 8 Houses for a total of 10 units. Similarly all old, lacking proper maintenance and slightly beat. Wish they were Cash Cows but certainly are doing alright. I started seriously in May 2019 if that means anything.

This whole thing is a little perplexing to be honest. They want landlords to continue to cover the bill for their tenants, not have an issue for non-payment, but then provide no meaningful statements about how they plan to aid the landlord.

I am just a small guy in this business and I already have $15,000+ in non-payment with many of these individuals who will most likely never have the capacity to pay their debts back. Even worse they get there "stimulus checks" and instead of catching up or paying ahead they have the freedom to go blow it on what they want. 


I would care less if the government/Wolf had some detailed plan of action of how he feels these debts will be repaid and/or some sort of landlord relief program where he was going to send us some money to make up for these losses but it is absolutely ridiculous he expects us to sit here and bare everyone else problems when we are humans and have families too.


I am supposed to just sit here and pay everyone else's utility bills and mortgages so they can live there for free but no receive any money from them to pay my own. Does he not see how absurd that sounds. I can only imagine how bad it would be for someone with significant inventory and a high debt to income ratio on their properties.

Originally posted by @Anthony Wick:

@Robert Hanson

Did you say you could get $750+ rents, and $1,000 deposit, and you received 25 applicants quickly? Are you sure this is a C class property? I’m not saying your info is not correct, but maybe my definition of C class is different. I was thinking a lesser property, less rent, and loads of people don’t walk in the door with $1,700+.

Now, no matter what the property is, the 3 references from prior landlords is a waste of time and energy. I do call prior landlords. But most simply don’t give the info you’re looking for anyway. Heck, a lot of people on BP state they don’t even bother with filing court notices or trying to get back rent. “Waste of time” they say. Doubtful you’re getting much truth from past landlords. It’s one of my lesser requirements. Credit score and 3x income to rent trumps it. That, and never allowing a tenant with a prior eviction. Ever. Not 5 years ago, not 20 years ago.

Wish I would have got this kind of advice a year ago. Past landlords based on my experience often don't give any information worth noting and if it is their current landlord if something is bad you can bet your A** they are trying to get rid of them so will give you a load of garbage (i.e. ask me how I know).

As far as getting your money back your better to advise you plan on taking them to small claims unless they make payments. I have had that work a few times with some success.

If my only issue was late rent to be honest I don't even get that upset with that anymore in the "C" class world. I see that as part of the entry price for getting into a lower class market which is why I can see why people do "A" and "B" class now. As long as I get paid sometime in the month and the tenant generally leaves me alone it's a win/win to me. 

My issue is the amount of absolutely insane people you run into. They break stuff on purpose to complain to try to get rent off, harass you when there is a small problem in a century old home, don't change utilities after 6 months, make the place a filthy mess. Pre-screening only takes you so far with these people they know how to work the system just like everyone else. They put on a good face but once there in the chaos ensues. The problem is these are the one's that somehow always seem to make payment so no grounds to evict. This is where the true stress in my last 2 years has come from.

If you paid all cash you didn't even have to wait the 6 month seasoning period you could have in theory done it the day after if you would have liked. I would typically advise to find a local bank that is convenient as my guess would be most rates will be comparable to point it may not be worth extra hassle. 

I started last year doing essentially the same strategy you have and while I would by no means consider myself an expert I have done (6) with 2 different banks so take my advice for what it is worth. As far as the "who" I live on the other side of the state so I am not sure how relevant it would be but I use either S&T Bank or InFirst.

Looking to start my second LLC with my brother.

I am currently involved in a "3 way" partnership LLC that was drafted by a lawyer. He didn't even ask at the time which we wanted he just submitted it as an S-Corp. Me at the time not knowing anything about any LLC's didn't even know there was options I just assumed the lawyer knew what he was doing.


The purpose of the business will be potentially up to 50 buy and hold rentals. If it makes a difference we plan not to touch any of the money for personal use (i.e. "distribution") until we have reached our goal so all the money will be reinvested for  business purposes.

As I know a lot of the people in here are in the "buy and hold" model I am wondering what path others have chosen and why. More importantly those that do not take the income for personal use.


Jared

The ARV is not out of the question but rents are very localized in Pittsburgh. There are a few areas where over $1000 is more achievable but still many areas where it is not with out being in an "A" neighborhood with an expensive unit. Pretty sure Jim K. has some houses in Munhall and Whitaker area so he might be able to tell you if your thoughts are realistic. Me personally I do not know enough about the immediate area that when I see it is near Homestead, Munhall, and West Mifflin I get a little worried.

Originally posted by @Theresa Harris:

@Eric Piccione Look at the building as a whole.  Rent is $5425, mortgage is $4355.  Now add in property taxes, vacancy, repairs and maintenance.  Who pays for utilities?

The way I read his post was the P&I of $871 was for the whole building not per unit. I may be wrong but even looking at his calculation that is what I inferred.  

What impact would the Refinance have in relation to the current financing you have on the property (i.e. increase, decrease, or neutral effect on cashflow)? That is pretty solid cashflow for it already being financed.

I as well wouldn't mind knowing the general location and what kind of rent you are pulling in if you don't mind exposing such information?

I sold my GTO to fund the first property then used a refinance to pull my money back out as well as buy a second property. I then refinanced the second to buy 1 more. By selling my "liability" I was able to acquire 3 houses with $90k in total debt, estimated $80k+ in equity, return my initial investment to myself, have about $15k left in reserve from the refinances, and the properties are combined cashflowing about $1500/month using a conservative 50% model (i.e. I am actually making more in real life as all the money is invested back into the business so it just builds the reserve).

It was hard to do but one of the best decisions I have ever made although I will say that the experience of landlording and quick repair has put some stress on my life.

To be honest although a setback it would rather have to buy a new washer/dryer than clean out a filth hoard or deal with cosmetic or structural issues created by the tenant living their. May be a little more pricey than somethings (i.e. not sure what kind of washer/dryer) but it is a simple fix. Keep on keeping on....