All Forum Posts by: Vincent Filia

@Scott Pearson Thank you Scott! Would the 'due on sale' clause come back to bite me down the road? I've heard that it may hurt people who are in a similar situation. Do you think a basic PA specific lease would do the job?

@Tim Herman I'm not sure what PP is? Purchase Price? I'm not exactly purchasing it, so from what I understand I'm not pulling any money out to purchase, unless I have that backwards lol.

Rehab Budget on my end is probably $25k unless I can get someone to work with me on the deal. 2 efficiencies could get $500/month each and the 1 unit could get $650 per month. In my mind it would make sense if I was to do the 2 efficiency route is to finish one of the efficiencies & get it rented before starting the other upstairs efficiency. I'm not sure on time line to be honest. ARV depending on the route I choose (2 unit vs 1 unit) is $65K. Square footage is 1350 Vacancy is have at 8.33% of monthly rent and I just maxed out the repairs for my budget at $25k ( i'm a worst case scenario guy as I'm starting out)

There is already that Home Equity loan on the property now, could I get another loan in my name?

@Scott Pearson That's kind of what I'm trying to figure out how to do. I'm trying to under stand the ins and outs of this kind of deal.

Hi BP community!

I'm a new investor in Southwestern Pennsylvania, I'd really like it if anyone could share some insight on what they'd do in my situation... Here goes!

The house is in Charleroi PA, a small town in Washington county. Depending on the part of the town you could be dealing with a C or D rated area, this particular property I think is located in the C rated category. I've run the numbers on the property and it looks like it could be a home run, but just like any new investor I'm struggling with the 'rehab cost' analysis & I am approaching this as a BRRR deal for now.

Here are my numbers:

Rent : $500 per month at the least per unit ( if I decide to convert into 2 separate units, more on that later)

Taxes: $700 per year

Insurance: $700 per year

All utilities Paid by tenants

Avg yearly maint/repairs: I'm going with $1200 per year, but i'm not sure if that is a good number to start with

I'd also pay for a home warranty: $600 per year

Now for financing, I'm working with the seller on seller financing. He has a Home equity loan where he pays $190 per month and he lives downstairs in the finished basement which is a separate entry from the 2 or potentially 1 unit above him. The outstanding principal is ~$25k and he has about 20 years left to pay on it.

Now some info on the property, the top 2 or 1 unit is completely gutted down to the studs. He started the project himself but he admitted he just stopped caring. He is approaching 80 years old and he just wants to help out a young buck like me try to make some extra cash flow.  I'm in between 2 options: Make 2 separate entries and have 2 separate 1 bed/1 bath efficiencies or finish the whole thing (2 floors) and rent it out. I'm thinking it could fetch $600 - $650 per month. 

One last thing, I'm not sure how long the man has left and he acknowledges this. How would I set this up so that if Lord forbid, he passes away while I'm thousands in to this thing?

Any help would be much appreciated!!!

Anyways, I may be making this more complicated in my head than it is. Let’s say the owner has home equity loan with xyz bank. He wants to sell his property to me but right now I don’t have the capital. He is offering seller finance which on the surface is he will charge me $X per month and Once renovations are complete I can collect rent from the 2 units above the seller. 

I guess I’m just curious what the best way to do this would be? Secondly, once the renovations are complete could I refinance in my name and effectively pay off the balance of his Home equity loan and cash out whatever the remaining balance is, if any?

Hi everyone, I'm new to BP and this is my first post.

I'm working on a triplex deal in Southwestern PA and I'm working with the property owner and leaning towards seller financing.

Once all renovations are done, and I have tenants in could I refinance, pay off the existing loan the owner has and have the property be mine?

I'd like to do this so that I'm safe from the seller defaulting on the loan & any other pit falls.