All Forum Posts by: Michael D.

I think you'll find that this will vary quite a bit. I would expect some to want to see you bring 20% + rehad + cash cushion, while others will float most or all of it for you. Expect to pay more in points, fees and rate the less money you come in with. Also expect that your track record will affect the cost and even possibility of you getting financing.

Once you're past the rehab phase and into holding, things become less variable. You should be able to get a refi for 70-80% of the current value. This could take longer than you expect though. The lender is probably only going to trust income numbers that have been holding steady for a while - 12 months or more.

Brandon Laughridge,

Make sure to consider what will happen if the money is still tied up in 12 months. Not saying that you shouldn't do it, just make sure that all three of you consider this unlikely but possible scenario.

Don't forget that just as learning how to manage a property is a valuable skill, so is learning how to find and manage a good property manager.

Eventually you might need or want a property manager, as it can expose you to more deals in more areas.

Utilities can be a killer in Pittsburgh. $104 might be low. Move whatever you can to the tenants, but you're likely stuck with water and sewer, at least.

Ignoring a management fee is wrong. Regardless of who is doing it, there is a cost, and any future buyer will certainly count it in. I use 12.5% on these low-end rentals. 5% for maintenance also seems low, but maybe you can get away with that. I use 10%, but I don't have a large enough sample to know if that's right, and most of my units rent for less than $600/mo.

Make sure you count up all the taxes carefully as well, including occupancy permits and various other ordinances that exist in the Pittsburgh area. Call the borough for that info.

Michael

I'll check 'em out. Thanks Jerry Kisasonak!

The question is, why did the police department advise you not to go in? Safety? Legal? I'm surprised you even asked the police, but now that they told you not to, I would probably follow their instructions.

Sidenote: How do you like the McKees Rocks market? What is your plan for the property? I'm investing in the Pittsburgh area myself.

Michael

I'm in contract on a couple of houses for about $45,000 each. I have the cash to close, but I'd rather finance if I can. I have about 3 weeks or so to close.

Can anybody recommend a good hard money lender that will finance in Pittsburgh, PA to an out-of-state borrower with a good track record?

Thanks!

He'll have a pocket full of money from selling, so you could ask for 6-months advanced rent, refundable pro-rated whenever he leaves. And make sure you charge above-market rent so he has an incentive not to just stay.

Michael

If it is being sold by another more experienced wholesaler for $55k, there is nearly zero chance that it is a good deal for you to make money on as a wholesaler.

June Tay, I recently decided to leave Win Rental in favor of a new manager, Equity Real Estate. So far Equity seems great, but only time will tell (today was their first day, as a matter of fact).

I also use Arbors for one house, and have asked them to manage two more that I hope to purchase. They seem to be just fine. I (fortunately) haven't had a lot of reasons to interact with them. I get my check and that's about it.

Let me know who you end up with, and how it works out. Always good to compare notes.