All Forum Posts by: Sharon McCants

@Deborah Wodell Thanks for the input Deborah!  Looks like I'll need to call around to local banks and see what works for us. 

Thanks for your input Gary!  I'll follow up if we continue down this road--from what hearing, fees are very high.

We're also considering selling off-market to another investor. It's fully renovated with good tenant.  

Thanks Jeremy. It’s a 2/1 townhouse in East Pittsburgh fully renovated last year. It’s probably worth more now… that was a quick appraisal from August 2024. 

We’re not looking to purchase anything else right now. And, as you mentioned, it may not make sense to do a small loan and pay high fees on such a small investment.  

We looking at all our options and may also consider selling to another investor as a turn key property but need to make a decent profit. 

Thanks for your input Zach! I’ll keep your info on-hand.  So I guess the next option would be a hard money loan?

Chris can you share the lender you worked with that does $50k? The appraisal should have increased some from last year so we may be around $50k with 75 LTV.

Thanks Chris. Good food for thought. That's a good point to note about lenders going as low as $50k... I hadn't thought of that.

I will start researching some local lenders tomorrow. 

Hi, This is my first BRRR investment deal with two partners/family members (LLC), and I'd like some advice from experienced investors. We are 8 months into our first property and would like to cash out to make other individual investments instead of the initial plan to buy additional property. The property is a cash purchase (each put in $13,500 for a total of $40,500), and we borrowed money for the repairs and the balance is approximately $10k. The property was appraised last August after repairs for $58,500. The property is currently rented for $1200/month, with a consistent tenant.

We're looking to get about $50k, to get our investment out and pay off the repair loan. Can anyone share what's required for a loan when you have an LLC? Does credit play a factor? This is our first business venture so no established credit. Would the house as collateral be enough for a lender? Should we try small local Pittsburgh lenders or our business bank, PNC?

Lastly, only one partner really wants to cash out, so does any other scenarios work here? Any additional advice is appreciated.

It’s been a while since I’ve posted this but just wanted to follow up with an update… I decided to hold on to my Atlanta rental.   received a lot of great feedback and overall it made more since for me to hold on to the better property in Atlanta.  However, I did make a purchase in Pgh that is cash flowing,  but no equity so now I see more clearly what you meant when you said it’s better to have equity in the long run. 

Quote from @Josh Bowser:

Hey Sharon - I hope you are well!

I'm originally from Western PA as well (Slippery Rock) and now reside in Atlanta.

Here is how I am looking at it along with the assumptions I am making:

1) I think the growth prospects are better in the Atlanta market than Pittsburgh from a pure demographics standpoint.
2) I estimate your return on equity at 7.2% currently

3) Over the long haul appreciation is going to take you further when it comes to net worth than cashflow will

4) Doubling of the roofs is doubling the expenses

Things to consider:

1) What is the year built of your Atlanta property vs. what you could replace it with in PGH?
2) 7.2% return on equity is pretty decent in today's market. Can you go out and increase that comfortably in pittsburgh?
3) Do you think you would like owning rentals in Pittsburgh more than Atlanta? The emotional / confidence factor does matter when it comes to conviction to hold over the longhaul.
4) Are you improving or decreasing in the quality of area you are going into in order to acheive this cashflow in PGH?

Would love to chat through this situation with you as I am always pulled to invest in Western PA when student rentals pop up near SRU. Shoot me a DM!

Quote from @Joseph Beatty:

There's definitely a lot of cheap multi families in the Pittsburgh area. Obviously, the condition of these varies with price, but if you're willing to put the money into them to update them, this could be a great strategy. A hard money loan with 10-15% down may also allow you to keep the Atlanta property, if you have the reserves to do it. Happy to connect if you need help finding multi's in the Pittsburgh area! 

 Thanks Joseph!  I will keep you in mind.  I currently have a property that was an assigned contract in East Pgh that we're finishing up reno on now--we're looking to rent and refi.  Trying to make more contacts in the area.