All Forum Posts by: Joel Lwanga

@Grant Thompson and @Chris Policicchio, thank you both for responding to my post. I made a few grave mistakes as this was one of the first times I have used the BRRRR calculator. I went ahead and made the necessary adjustments and was able to find numbers that were a lot better than what was posted here.

@Jim K., I appreciate the feedback, and will do my best to answer the questions that you posed in the order you presented them. Before I begin, the biggerpockets BRRRR calculator doesn't allow for the sharing of the street address of this property, but for your aide, it is 2623 Patterson St, Pittsburgh, Pennsylvania 15203. If you happen to get better numbers and are inclined to make an offer on it, feel free, as I am only interested in attaining a better understanding of the Pittsburgh market through deal analysis, and not so much in the property itself.

1. The comps I received were from a friend of mine currently residing in Pittsburgh who also happens to be a realtor that only works with investor, especially those from out of state, as I am in California. He himself invests in Pittsburgh and has completed, and is in the process of completing, several fix-and-flips, and has multiple buy and hold properties as well. His name is Choby Siau and I would highly recommend him (Message me for his contact info). I did however fly out there and completely understand the situation when it comes to pocket neighborhoods. Choby does too, so when he gives me comps, I know they are reliable.

2. The 8 month rehab estimate came from info I was able to directly garner from speaking with my buddy Choby's own licensed contractor who has worked on several of Choby's personal properties similar to this one. The exact numbers for how much each fix would need are too extensive for this chat, but $85k is a bit high. I like to overestimate a bit to ensure I'll have some wiggle room should it take longer than anticipated. I would also look to convert this property from a 3bd-1ba to a 3bd-2ba. Also, this house was built in 1895, but most of the houses out there are at least 100 years old so it's fine. 

3. Last but not least, whether an offer of $40k would or wouldn't be accepted on a $77k house makes no difference to me. As I said in the beginning, I am only looking to gain an understanding of what numbers do make sense. I have zero emotional attachment to any property whose numbers don't work, and would happily move onto the next one.

All in all, I wholeheartedly appreciate your advice. You have given me a lot to think about. I don't come across many people willing to tell it like it is. If you would like to chat further, please feel free to message me your email. I'd like to get to know more about you seeing as you appear to have more of a grasp on this market than I do.

Warmest Regards.

@Stefan D., thank you for you're suggestion of 4.5% for 30 years. I'll make that adjustment and re-analyze. I'll also tailor my BRRRRs to houses in the mid $100k area and save this for a flip as you suggested.

@Colin McVeigh, thank you for bringing to my attention the ARV to income ratio. I completely overlooked that and am goin with Stefan suggestion to save a house like this for a flip as apposed to a BRRRR.

Hello Everyone. This property in Pittsburgh, PA is on market for $77K, but having analyzed it several times, it doesn't seem to work at those numbers. It has an ARV of 235k based on several solid comps in the neighborhood. With an offer of 40k, I'll be putting down 25% ($10K) and using hard money for the other 75% ($30k), as well as 100% rehab (85k) with an 8% APR. Paying only interest for the 8 months the rehab will take, I'm only make $60/month after the refinance. Does my offer need to be lower than $40K, or are my numbers off in some other way?

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Hello Everyone. I am an out of state investor from California currently in the Pennsylvania market (Westmoreland county). I spend my day analyzing dozens of long term buy and hold multi-family rental properties available on the MLS, and although I have found several diamonds in the rough, I have began to see that deals are rather scarce. I was wondering if there are any active wholesalers or unconventional deal finders in this particular neck of the woods who might be able to share their story and possibly clue me in on how it's done. If so, feel free to connect and we'll see if I can add value to you as well. Thank you all in advance for your time and help.

Hello Everyone, a realtor friend of mine from Pittsburgh, Pennsylvania clued me in on this property, but I cant figure out how to make the numbers work. I'll be using hard money for both the purchase and rehab. They fund up to 75% of purchase and up to 100% or rehab. All input would be great. Asking price is 77K.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Greetings everyone. I am looking to network virtually with individuals actively investing in out of state properties. There are no REIAs anywhere near my area, and I would like to get some insight and a different perspective on what methods can be used, scaling, financing, etc. 

Thank you all for your interest. It would be easier on me if you would all message me your emails and I shoot out 1 mass analysis sheet a week as I try and analyze at least a few properties a day. For those who responded before this post, I will message you individually with my initial list.

Greetings. I am an out of state investor from California working with a partner to purchase long term buy and hold residential properties in Westmoreland county, Pennsylvania. Unfortunately, we have come across the age old issue of having more deals than money, and rather than letting these deals go to waste, I would love to offer them to anyone looking to invest in this market. Being a relatively new investor myself, I have developed a passion for analyzing properties daily and would love for any interested investors to take a look and benefit from what I am unable to at the moment. There are no strings attached to this offer, I am doing this to simply better my knowledge of this area and maybe help someone out along the way.

Jerry Quintiliano, I'm investing with a partner out in Westmoreland county who is an engineer that's supervised multiple rehabs. For a very rough estimate, you can expect between 20k - 40k for a decent rehab on a property. Make sure your number make sense through the rent calculator before pursuing a flip just in case you aren't able to sell as quickly as you'd like. Good luck.