All Forum Posts by: Jay Belcher

@Anthony Angotti - sorry I don't have a brand to recommend. I know what we used was a commercial line of one of the big appliance names. I let the supplier pick for me, knowing they wouldn't sell what they couldn't service.

In time we switched that place to separate utilities & hook-ups - we got rid of the coin-ops. They were great when you have the time to constantly be checking on things, tinkering if something doesn't work, etc. but as demands on your time grow, I would favor hook-ups or a service that supplies & maintains machines. The decision also has something to do with if/how your utilities are split.

I agree w/ @Deanna McCormick. Generally you need a 4-unit building or bigger for it to make sense to a company that furnishes the machines & provides maintenance.

I've had good luck with buying machines from Appliance Warehouse. Buying is nice - you'll rake in loads of quarters.

Just remember that higher utility bills come with the territory. Don't forget to factor that into the real cost.

Nice job! Is this your first place?

I'd like it better if you had less of your cash in the deal, but the numbers sound very acceptable. By my count, you're cash flowing pretty well even if you're doing 15-year financing. Also you're at 50% LTV which means you could probably refi & pull your cash out if you desired. Might need to season it a bit as a rental first. But at the end of the day you should be pretty well positioned to do it again!

We've had good luck w/ PNC and they are definitely one of the biggest players in town - maybe the single biggest player.

Check their webpage on the small business side. Pretty sure they have tiered accounts - e.g. greater minimum balance = greater number of transactions w/o fee.

Other local banks probably have similar deals - but got to look at business plans & not personal account plans.

Nice part of local account is tenants can deposit right at the bank with some basic info from you.

Hey @Anthony Angotti - realistically 15-20 may be good. That's probably about as a big a group as we could get anywhere that's not going to actually charge or require a minimum order. I was wondering about the Kings in Bridgeville, but that would also be probably capped at 15-20. There's a good chance 30 people will say they're real interested and then only half will show. But it could gain momentum over time.

Great job finding any place. 

I wouldn't say the price point is as important as the amount of work needed. Unless you have good construction experience, stick to something that isn't too complicated. A lipstick job is going to be a lot easier to manage than underpinning a foundation.

Remember if you haven't done this before (or even if you have):  things will take longer than expected, things you didn't expect ($$) will pop up, contractors may lie to you, you may not understand the market as well as you thought, etc.

@Robert Zazac I think you're on the right track. If you're looking for wholesales, etc. you don't have to worry too much about paralysis by analysis. Use the right paperwork & get a property locked down. The market will tell you if the deal stinks & if so you aren't tied into it.

@Anthony Angotti I'd also be interested.

Beyond ACRE there's Pittsburgh REIA. They have a lot of sub-groups (mostly by interest rather than location - wholesaling, commercial, etc.). REIA's run by @Josh Caldwell and he's pretty open to new sub-groups - he can promote it to the whole REIA without looking for vendor slots, etc.

Hiring w/o being on the ground is tough. Investor referrals are best, but a lot of investors are reluctant to refer their GC's as they have a lot of work in the pipe already. You may have some luck with Angie's List, etc. but expect to pay up.

I've never had to manage a contractor from afar & think it would be difficult even with the best of technology (Skype, etc.). Scope & hiring seems pretty doable, but it really helps to have someone who can verify progress with their own eyes. If you're using a local realtor, they might be able to do walk-throughs for a fee. A home inspector could possibly also fill that role. Pictures only show what they want you to see - try to get some local eyes.

That strategy has been going on for some time in various Pittsburgh neighborhoods. As always, the trick is to buy right, which generally means sourcing leads from someplace other than the MLS.

I suggest you check out the local REIA club - or at least visit them on Facebook if you are not in town. Among other things they have a page just for rehabbing.