All Forum Posts by: Richard Moreno

@Aaron Cullen, this is the first time that I have bought something in Pittsburgh, but so far I feel comfortable that I made a good choice here. Using the BRRRR calculator I came up with some numbers, although once I get them rented I would have to tweak them a bit I'm sure.

House #1

Paid cash $30k ,

maybe $10k in updating,

expected rent $1000

cash flo  $431

proforma cap rate ;  12.72%

cash on cash ROI ; 17.5%

total cash invested after refi  $0  !

House #2

Paid cash $55k

around $10k in updating

expected rent $1100  ( maybe $950, not sure yet )

cash flo  $417

proforma cap rate ; 10.25%

cash on cash ROI ; 12.6%

total cash invested $7,727 !

These were done with 30 year mortgage but not sure if I should do 15 years

Hope this helps.

Hey @Anthony Angotti , I would have liked to meet up with you when I visited but as soon as I got there we started looking at properties. Maybe next time we'll sit and have a coffee! 

But to answer your question I looked all over North, East, South and West of the city. I narrowed it down to a property in Arlington, Brookline, Swissvale, Mt Washington, and Observatory Hill. What I liked about most of the properties that I saw is there all perfect for a small rehab or just updating. So it was a hard decision but decided on Arlington, a 3bed 1 bath and Observatory Hill 2 bed 1 bath, I just had to have it too. They both need the same thing, paint, polish up the hardwood floors throw in an updated kitchen, some tile in the bathroom. I could see myself buying a few more in the future. And I'm open to partnering up with someone to do some flips.

I have been looking for a good place to buy a property to try out the BRRRR strategy, decided on Pittsburgh. So with the proceeds from a flip that I sold in Boston, I took a trip to check out some properties in Pittsburgh, looked at 12 houses in the 2 days that I was there. I was only going to buy 1 house but ended up buying 2 houses! Thanks to BP I was able to find a property manager ( @Neil Metzger ) who will also renovate both properties ! And then get them rented ! And of course Refi and repeat.

I was going to use a hard money lender to finance the deals but since I offered cash, they were able to do closing in a couple of weeks! Didn't have time to secure a lender so I just left it as a cash deal, so hopefully we can turn it around quick so I can refinance it.

They both should cash flo nicely

thanks for the input on Hubzu, 

These properties are in Philadelphia. I guess I'll just make sure their  worth the risk and then roll the dice!. Does anyone know how long it usually takes to evict someone in Philly? 

Does anyone have experience, or have bought a property on Hubzu with it being occupied? I am finding good properties on the site but am very nervous about bidding. First because I cant see it inside and second because its occupied. I placed a bid on a house and won, but then got nervous and backed out of the deal. Any advice BP?

So here is my dilemma ,

I am currently looking for a property to flip in Philadelphia, my brother is a contractor there,  and I have the money to buy a fixer upper for $40k to $60k and I have private money in Philly for the renovations. This plan is a go! all I need is an accepted offer. I will  buy now and have it ready for sale in the spring.

But at the same time I want to buy a property in Pittsburgh and do the BRRRR strategy. I am heading over there ( I live in Boston ) this weekend, I'm meeting with a local realtor to check out some homes that might need a little TLC. But now I'm having second thoughts, because I can buy a house for around $40k to $50k possibly get a rehab loan but that will still leave me with little funds between the 2 houses. Or should I get a conventional loan put 20% down and use the rest of my money for any repairs, and then refinance later with cash back? There is more to choose from above $ 70k, and they might only need cosmetics.

Wouldn't the property have to be rented first for me to get a loan? If not they would go by my income, Right? I don't think my income is enough for the purpose of the loan, because I have a mortgage in Boston that I am paying for too.

Not sure exactly how this will play out. Can anyone give me advice on how I should acquire the property or point me in the right direction.

I am trying to buy a house that I can flip with my brother in Philadelphia. I saw a house that I might be interested in but there is a squatter living there and he wont leave. The realtor that I contacted told me that because someone moved in, the property is for sale but sight unseen. So in that case I think I can get a good deal but I am responsible for removing the squatter. What can I do in that case legally?

I live in Boston and I am not familiar with this kind of issue. My brother says its common in some neighborhoods in Philly, he wants to go in and throw the guy out if we decide to buy the house but I don't know if that is the right thing to do.

Has anybody ran into this situation in Philly? 

and I am looking for a good flip for under $50k in N.E Philly, or Germantown, or South Philly

Hi James,

I actually sold my first house in Everett, MA all by myself. It was a duplex and I got 15K over asking! I decided to sell myself because I knew a renovated duplex in that area would sell easy, and it did I got multiple offers at my open house.

All you have to do is go online and find a flat rate entry only broker, or FSBO( for sale by owner) and all they will do is list it on the MLS for you, all you need is to upload photos and get a lawyer to close and review any offers, very important. And make sure you price it right.

Ricky

I am in the process of looking for my first BRRRR deal. And am planning on purchasing it with cash under an LLC. Will that be a problem when I try to refinance the property after I fix it and rent it out?

Because now that I remember I bought my last flip here in Boston with hard money and with an LLC, and when I went to refinance it, ( I ended up staying in the house for 2 years) I had to change the name on the title from the LLC to my name. Basically they did not allow me to refi with an LLC. Is this common practice?