All Forum Posts by: Shane Braunworth

Here's the latest and greatest on this property!
I ended up getting the tax lien money back after attending a court hearing and making an uncontested argument for the a credit given my lack of understand of the process.

I had quite a struggle to find a good contractor. I originally hired one to do a small part of the job, and he was quite slow. Glad I hadn't hired him for the entire house that's for sure,  it would likely still be unfinished! Once he completed his part of the job, I was able to see what the contractor next door had been up to with the neighboring unit. I ended up hiring him, and he has knocked it out of the park. The house is now fully renovated and looks nicer than anywhere I've ever lived in. Hoping to have it rented out by December/January. Currently, I'm waiting on some coordination between the utility company for heat and getting the U&O from the township.

As I seek to refinance the property, I'm thankful that housing prices have not dropped much if at all since acquiring the property earlier this year, though these interest rates are going to hurt a little bit on cash flow. I should still be out ahead at the end of every month with some extra set aside for maintenance. 

Thanks Chris! Glad you came to enjoy the story. This should be a great opportunity for me to learn how to manage contractors for future properties especially since insurance is making the scope of work for me.

I've had a wild month and won the auction on the property! My father ended up writing me an interest only loan for a year, so that I could afford the auction. I learned an expensive lesson too... The auction process where I purchased involves paying off all liens before paying off the bank, but I paid off the tax lien before the distributions were made. Sooo... I just arbitrarily increased my costs by a couple thousand $$$ which is quite an exciting lesson. 

Secondly, I'm really glad I have an insurance broker that got me a policy the same week that I called in. There was a fire at the property three weeks after the auction that destroyed the entire second floor and of course part of the roof. Thankfully everyone got out okay, but the families belongings were destroyed and on quite short notice need a new place. Thankfully I pulled the insurance policy even though it wasn't required due to my lack of mortgage.

@Chris Davidson Thanks for the tips! I'm en route for a HELOC, unsure if it will make it in time. Oddly enough, a coworker has expressed interest in lending to me. Going to explore that option as it might be a great holdover until I can get a HELOC. If all else fails I'm sure a local hard money lender would love to give a loan out on short notice.

I'm looking to buy my first property at auction, and it's the perfect BRRR deal. It currently has a tenant and just needs a bit of TLC to make the property a bit more livable. Does anyone have any funding ideas for the cash purchase?

I'm seeking out personal loans and a HELOC to help make up the difference between my savings account and the expected acquisition price. If anyone knows someone that would be interested in helping fund that I'd love to connect with you!

Specifically, I'm looking to do get a short term 80k loan for the purchase and I'd refinance in 6-9 months to payoff the loan. I have 80k of equity in my current home but currently can't use any of it...

View report

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

PS

Apologies for the poor title. I accidentally submitted the post before I had actually made any content for it.

Thank you! I sure hope it is. I've seen a lot of rehabbed properties hitting the MLS, so hopefully it's on an upward trend. Just a few blocks from me can either be pretty nice or really awful...

It's plausible that the bank is paying for it behind the scenes or I'm on a bank funded program not backed federally. But other than that not so sure haha. Citizens One lender had this for special offer for first time homebuyers so I went for it. Potentially could have gotten lower rates even with PMI elsewhere but will do better loan shopping next time.

@Everyone, thank you for the encouragement!

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Norristown.

Purchase price: $175,000
Cash invested: $21,750

Projected monthly cashflow is $450 after I move out of the second unit.

How did you find this deal and how did you negotiate it?

Found on the MLS and negotiated with inspection results through my real estate agent. Additionally, appraisal came in low, and the seller adjusted the price because of that.

How did you finance this deal?

3% down no PMI owner occupied first time home buyer bank loan.

How did you add value to the deal?

Added a central AC system to compliment the vented heating system and raised rent from 1075 to 1175.

What was the outcome?

Good tenant currently placed in first unit and living in second unit (huge housing savings for me). Well constructed house for minimal problems so far minor TLC before move in.

Lessons learned? Challenges?

Shop around for better bank loans. I had slightly high fees and could have potentially gotten a lower interest rate even with PMI given the current home buying climate.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Absolutely, if interested in buying a house in the Norristown, King of Prussia, or Phoenixville area message me for more details.