All Forum Posts by: David Coleman

@Anthony Angotti,

Thanks.  Do you happen to know if the deals were below market value, and, if so, how much below market value the deals were?

Thanks for the reply,

Dave

Has anyone ever purchased property through the City of Pittsburgh's Department of Finance?

You have to apply through the mail and it seems that the city selects candidates/businesses based upon some criteria.  I'm wondering if anyone has ever pursued this option and if the City of Pittsburgh offered fair prices.

The website for City of Pittsburgh property sales is located here:
https://public-pgh.epropertyplus.com/landmgmtpub/app/base/propertySearch?searchInfo

Thanks,
Dave

Hello Pennsylvania Real Estate Investors, specifically Allegheny County Investors,

I have some questions regarding information found on the Allegheny County Assessment Portal.  I've been driving for dollars and commonly finding once owner-occupied houses in need of serious repair and delinquent taxes.  I'm thinking that the owners of these houses have passed away, or, payment information wasn't updated before they entered assisted-living facilities.  

What is the process if one wanted to go about inquiring about, and potentially acquiring these properties?  Do I contact Jordan Tax Service?  Is it the township/city?  

I'd assume that the county would want to get these properties back on the tax rolls...but what steps should I pursue to get there?

If anyone could help share some insight, I'd greatly appreciate it.

Thanks,
Dave

Following.  Also looking for potential property manager(s) going forward.

@Matthew K.,

How would this affect lease option contracts?  Is that specifically enumerated in the city’s ordinance?

Thanks,

@Dmitriy Fomichenko 

No worries!  Hope it helped someone!

@Jack Bobeck I agree with your FHA 203-K assessment.

It was what we used back in 08’/09’ because we had an excellent 203-K GC that knew EXACTLY what to do.  

I probably won’t use a 203-K again, but at least they’re available if needed.

Investment Info:

Single-family residence buy & hold investment in Jacksonville.

Purchase price: $110,000
Cash invested: $3,850
Sale price: $126,000

Short sale purchase of a semi-completed flip with a purchase price of $78,000.
FHA 203-K rehab with a budget of $32,000.

Added value by:
- creating master suite (adding a bathroom to floor plan)
- adding a living room/family room
- new roof
- solar-tube lights
- renovating bathroom
- refinish and stain hardwood floors
- building a deck
- building a masonry entrance stoop

What made you interested in investing in this type of deal?

This type of deal was the only way that we could build what we wanted for the price.

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

This property was REO and the short sale process was the way we were able to get it. There was very little negotiating and offered at list price.

How did you finance this deal?

FHA 203-K Home Rehab Loan.

How did you add value to the deal?

Added value by:
- creating master suite (adding a bathroom to floor plan)
- adding a living room/family room
- new roof
- solar-tube lights
- renovating bathroom
- refinish and stain hardwood floors
- building a deck
- building a masonry entrance stoop

What was the outcome?

Lived in for 3 months.
Rented for 5 years.
Sold at modest ($16,000) profit.

Lessons learned? Challenges?

This is, more or less, the "traditional" was of doing deals. I'm looking forward to working smarter on deals in the future by funding as much of the deal up front with cash, rehabbing with cash, and pulling as much equity out of the property during refinance as possible.

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

Frankie Bonds Lee - Realtor
Doug Neill - Contractor