All Forum Posts by: Andrew M.

Thanks! @Alex Deacon . I'll be looking out for the pm

Hey,

I'm looking at buying a property which is being brought to the Sheriff sale next monday in Pittsburgh by a bank for a mortgage default judgement.

I have a somewhat in depth question  for some one who is highly experienced with these auctions. I would be happy to pay someone for their time given that they have first hand experience with the system.

Basically the question boils down to: how paying off the default judgement works after the auction and what potential hangups can happen during this process.

Thanks!

Andrew

Please dm me with contact info if interested.

Looking for advice as to next steps as someone looking to eventually make a career out of real estate. 

Over the last two years I have bought and renovated two properties in a neighborhood in pittsburgh that has seen intense appreciation and have built up something like 225k in equity.

My current high level financials are: 

Own two properties, both mortgaged and rented

Conservative total market value of all properties: 550k

Combined debt on properties: 325k

Total equity: 225k

Monthly gross rental income: 3.4k

Monthly net rental income: 1k

I bought both properties on traditional non commercial mortgages and I have an 80k heloc alll factored into the combined debt number above. Neither of my properties is in an llc.

I'm 27 now and making decent money as a programmer but would really like to start transitioning more and more of my income to passive (or passivish) income. I'm really interested in getting into larger scale buy and hold deals, maybe apartments or commercial.

I'd like to hear hear what some more experienced investors might do in my situation to leverage the initial equity i've built up into some bigger deals. Should I be pursuing financing from major banks, smaller banks and credit unions, or more alternative forms. Are there any other alternative forms of finance that are inaccessible to smaller investors but may be available to me as I build capital?

Anything else I should be doing right now to be better positioning myself for future deals?

All advice is appreciated, especially if it comes along with a story of someone who has gone through some of this in the past.

No she is not paying rent.

This is a single family house which I will be living in and renting out 2 of the rooms. I didn't want to bring that up because I don't want this to side track into a discussion about why that might be a bad idea. (I acknowledge those downsides, just not something that's relevant to my specific question in this thread)

I need her to move out so I can start renovations and then move into my house.
If I were to collect rent from here it could imply a lease between me and here which is the last thing I'd want in this situation.

I should have mentioned that there is no existing lease.

To Jerry: I agree with you, this is certainly a moral dilemma although she and her family have stated that she will be moving out to a Nursing Home selected by her family by the end of September (it was originally supposed to be August before close) . While I would certainly not force a lady that old onto the street, especially given that she's done nothing wrong, she does have a place to go and I expect her to keep her commitment.

In the short to medium term I can keep this afloat without the income, in the long term, I will end up defaulting if I can't get renters in there so I do have to take this seriously.

The idea is to put pressure on the family to get them to stick to their commitment while having a minimal impact on the elderly lady.

I guess what I'm looking for is to hear how other people would handle this complicated situation.

I just bought a house in Pennsylvania that I planned to use for mixed owner occupant and rental purposes. Due to a fairly insane set of circumstances that existed during closing I ended up taking ownership of the house with a tenant in the house. This was not originally supposed to be the case and I received cash compensation for this change in plans in an amount that I believe to be fair.

The current tenant is a very elderly lady probably 90+. She is supposed to be moving to a nursing home at the end of September. I will be a hand delivering a 30 day notice to vacate before the end of this month.

I have already spoken with a lawyer but I want to see if any of you experienced folks have any input for me. I know this could potentially be a very ugly situation. What pitfalls can people for see in this situation? What should I be doing to protect myself. Also does anyone have a notice to vacate template I could view? I have one I found online but I would like to see some more.

Cheers

Yes this is possible but you better be pretty confident on your numbers and market evaluation if you want to pursue this option. You're going to have to waste some time during the refinance application and the bank will order an appraisal. If after a couple weeks of pursuing this the appraisal comes in low, you have just wasted alot of time and still have a very expensive loan on your hands with no immediate exit strategy and probably not much time left.

Talk with local banks and specifically talk to some community banks as opposed to larger ones. They may be more willing to look into things on a project by project basis as opposed to some large banks which can have pretty rigid guidelines.

If you can get a bank to to give even a soft preapproval ( IE talk with a loan officer and go over your numbers and see if it fits into the general guidelines of something theyd do) or even a specific preaprroval based on ARV and your rehab plans , this option can become alot safer.

As always when dealing with hard money, consider holding costs for while you are going to be going through this process. They can be significant.

I want to preface this that I am not using this post to shop for loans. Any commercial services will be ignored. I am simply looking for information regarding the feasibility of my plans.

I've been looking to buy a rental prop that I can rehab with a fha 203k loan and pay off with the cash flow. Recently however, I found a property that fits the bill but its so cheap I could buy it for cash and on top of that the buyer wont even entertain a financed offer. I have the money to buy the place cash but nowhere near enough to finance the rehab.

One important thing to note is that my strategy for this is long term cash flow NOT FLIP. I could possibly use a hml and refi but i would prefer not go that route as i percieve it as risky.

Has anyone heard of banks that are willing to to 203k or other similiar rehab loans for properties which are already owned out right. If so how was it structured?

Any other ideas on how I could creatively finance this?

Haha actually I already live in this exact situation but worse. I rent in a house with 7 room mates who signed separate leases and don't know each other and I actually love it. I'm also 24 so I probably have different taste than alot of people on here.

It's a great rental area so I should be able to attract young professional tenants.

I agree that there are some downsides to this settup and it could be stressful/ annoying but I think it will start me on the track to financial freedom at a young age and that's my ultimate goal.

Worst case, as long as it is cash flowing I can always move out, rent my room and go rent somewhere else

I'm looking at investment property which I intend to hold for cashflow while owner occupying (I'd get a 5 bed, live in one and rent out the other 4). In this market I can actually still cashflow and even hit a 7 or 8 % cap while living in one room if I find the right deals.

I have a healthy cash position and feel like I'm ready to make this move into my first property but I am having financing issues. I have minimal provable job experience because I'm young and have been living out of the country for the last year. My dad however will cosign for me on this property which means I am pre qualified for essentially any property in the market I'm looking at.

The catch comes in the fact that my dad is cosigning but will not be living in the property. My bank (PNC) has told me that the only kind of loan that will accomodate this is an FHA loan. The other problem comes from the fact that most of the properties in this market need some work which makes it dificult for them to pass FHA inspections. Because of this issue I'm also having a hard time finding agents that are willing to work with me because there's this big risk of investing a lot of time and then having deals fall through.

Some questions:

1) Does anyone know of other bank loan types (I'm also pursuing private money but it's difficult without having a track record) that could possible accomodate my cosigner situation.

2) Does anyone have stories of either success or failure of buying houses with FHA loans that needed moderate rehab work, and trying to work with the seller to get repairs done before closing?

Note: I'm not advertising for a loan or looking for one in any way. I already have a bank I'm working with and a preapproval. I'm only looking to obtain information about the loans themselves.