All Forum Posts by: Jared McCullough

Fortunately no. I was getting ready to do one this month and a few days before I was getting ready to post the notice the individual responded that they are in the process of moving out (i.e. This was after about a week of not responding to calls/visits/texts...some people amaze me).

There are some free forms if you just google search "PA Eviction Notice" or "PA Notice to Quit" online and use the images search to find ones you like. That is all I did.

If you are able to fund through like a HELOC or 401k loan to buy and then do a refinance I have plenty of banks in Western Pa that I can direct you to that are willing to do a refinance for less than 50k as that has been all that I have done the last year was loans under 50k. As for a conventional mortgage I'm surr they are out there just not sure what you are looking for.

This forum is very interesting. In one thread I can read about maximizing leverage through 30 year loans and the stupidity of calling leveraged debt risk then I come into another that talks to many of the problems of over leveraging and using BRRRR. It can be quite intimidating as a newbie trying to decipher what the best method is but I understand there is not one right solution.

 Jeremy

Thanks for getting back. I live outside Chippewa but currently only own rentals in Indiana County. I am looking to invest a little more local. 

Do you go to the real estate gathering? I wouldn't mind talking with someone who has some experience in the area. 

I know quite a bit about New Castle but not about the rental market and I am just worried about saturation. The buy in price and market seems to good for me to believe that there is not some underlying reason why more of these properties I'm seeing are not selling quicker.

All I can say is...Dam. 

Here is to you having a better 2019/2020.

Just was hoping to connect with a few people investing in New Castle to hopefully understand the market a little better. I live about 35 minutes away but have been watching a few houses up there for months.

I would somewhat agree with Amy in that having a house 20-30 minutes distance is probably standard for anyone self managing that has a decent size portfolio and very doable. As Jim stated the management side is/should not be a full time job and the fact that you have had vacancy for 7 months is just absurd in my mind (i.e. are you overpriced for the market, is the market flooded with rentals, how is PM advertising, what is driving lack of interest). Related to the grass was this something you were having one of the tenants take care of?

Are you in like Charleroi or Donora area? Although small as of right now my market is as well counties surrounding Allegheny and mostly "C" class neighborhoods. We have no trouble placing tenants as long as the rent is set or slightly below market rents and we don't do anything elaborate as we are just using Facebook Marketplace to advertise. We just closed on a duplex last Friday and had 10+ people within 2 days come look at it with (2) families selected for August 1st lease which was more on our part since we had not even really had anytime to get in and address some of the problems. 

I have avoided some of the "D" class neighborhoods as I suspect that issues such as yours are more prevalent but I still struggle to think that a 7 month vacancy is normal and can't be corrected by better advertising or adjusting rent price.

I had no problem finding banks willing to loan to our LLC. Albeit these are all commercial loan terms w/ personal guarantee but that is pretty much the standard from my understanding if you are doing multi-member LLCs. All the one's I looked into are in PA so not sure if that would be an issue but I can give you the names if you would like. There should be no problem locating one on commercial terms if your looking for conventional then that is a different story that I still have not figured out yet.

As stated by others it is about what the total gain that loan is providing. It is fine running one house slightly negative if you can purchase others that are producing full rent with the mortgage you gained from the first. If taking the full LTV out versus the lesser (i.e. initial investment) is going to put you in a better position such as allowing you to buy 2 houses instead of 1 then it may be the better option.

I have not been anywhere close the extreme your describing but usually my all in costs are 25-40% LTV and my bank is willing to give me 80%. I am able to gain instant business capital (i.e. usually $10k to 20k per deal) while still cashflowing $100-$300 on 15 year loan terms.

Again no where near what you are implying but here was my last deal:

Purchase + Rehab: $24,000

Appraisal: $70,000

Loan: $50,000

Debt: $410/month on 15 year note

Rent: $875/month

Gross Cashflow (Rent - PITI): $370

Net Cashflow (Rent-PITI-Vac/CapEx): $195

I gained $26,000 in business capital and if I can somehow manage to pull similar pricing I have essentially just turned 1 house into 3. As well I am still managing about $150-$200/month cashflow on a 15 year loan which is atypical to what most are doing at the moment.

I have (2) more very similar in the works at the moment. Right now my biggest fear is how much to leverage as all CORF seem to require personal guarantors.