All Forum Posts by: Sean H.

Wes,

Check out the other thread about tiny home development. I feel like there is a way to combine the two ideas.

Danny,

where are you getting 15k to build each cottage?

I like the concept of it. Especially marketed to young people or boomers looking to downsize. These are called pocket neighborhoods and have been around for some time. There is even a book called "Pocket Neighborhoods" that gives a lot more information if you want to pursue this.

A local builder was trying to partner with me to do this same thing. One issue I could not get past was parking and vehicles in general. Where do all of the people park? In my area, public transportation is very under developed so vehicles are a necessity. Any ideas?

Wow Rich,

How were you able to accomplish this?

"Believe it or not, I'm not by my phone, please leave a messsssaagggee at the beep. I must be out, or I'd pickup the phone. Where could I beee?? Believe it or not, I'm not home!"

I live in the general area, about 60 miles east of Pittsburgh. I use a property manager to manage the units. She is local and handles absolutely everything for me. If you end up getting some rentals in the area, I can provide an introduction to her as well.

The lender is First Commonwealth bank. Very, very easy to work with.

My lender will loan based on my purchase price plus improvements up to 75%. The property I was referring to I was all in close to 15k. I got a loan for about 11, leaving me invested in the property for around 4. all round numbers for conversation sake.

I have 11 units in the greater Pittsburgh area. 7 are currently financed using the methods I have described and haven't gotten any push back from my lender when I request a loan. In fact, I am closing on a property the end of the month that I will refinance once it is rented out. My bank knows its coming and is fine with it.

I buy rentals in the greater Pittsburgh region. These areas are exactly as you describe, economically depressed.

My strategy is not one of appreciation, but of cash flow. So far, I have seen a 50% return on my investment after about 11 months. There are many properties that you can buy for about $12,500, put 2k into them, then rent them out for $692 /mo with section 8. I buy with cash then refinance to get my money back and do it again.

Rich,

I would indeed be interested in seeing some numbers.

Rich,

Are those returns still possible in the S. TX market? If they are, is there any particular reason you chose to return to the Utah market vs TX?