All Forum Posts by: Austin Mudd

You can go work for a SFR REIT or private equity company like Invitation Homes, American Home 4 Rent, etc. which own 500-2,000 homes in a single market.

I have a Project i'm looking to rehab and sell. It has an awfully weird kitchen layout where there's a doorway to an additional sink and cabinet space. The house is a 3/1 1950sf. Will be keeping my costs down by going more on the low end side.

Two thoughts:

1) Get a contractor to turn the little room into a powder room. The house has been vacant and the copper has been stolen so need to run pex anyways. The negative is that you have a weird kitchen without much cabinet space. And it would cost more. You might scare off buyers with the layout and lack of cabinet space

2) Wall the doorway off and use the space as additional counter/cabinet space. The door adjacent to the left is the patio door and the existing room could be used as a storage room. If I spend my money in the kitchen, I think it may sell the house better than losing the cabinet space with the powder room and create a better layout to utilize the kitchen.

Also, I would like to get rid of the window and utilize the space as cabinet space. Not sure where to relocate the sink and place the refrigerator, stove, and dishwasher.

Link to kitchen photos: https://drive.google.com/open?id=0B4bL5J39GBS7ZlVl...

Link to house video walk through: https://drive.google.com/file/d/0B4bL5J39GBS7eXhjN...

What do you guys think?

@Amen R. I am a San Diego native who lives here for work now, but be careful about where you put your money. Spend a few months networking with people and getting familiar with the neighborhoods here. Get a flight out here for a weekend, rent a car, and drive every single street in the neighborhoods you're looking at. You could be looking at a property for $50k while the ones across the street are selling at $120k and you would thing it's a deal, but in reality the $50k house is a dumper/is next to an industrial property/higher crime area/etc. In Southern Cal you can look zip code to zip code and put an average PSF $ on properties. Not in Pittsburgh. The values change block by block almost. With the age of the homes there's usually some sort of deferred maintenance that needs to be taken care of that would be harder to be aware of from the west coast.

Correct link for comps:

https://tools.reikit.com/comps/549/comps

This excellent cash flow rental offers an opportunity for you to keep it as a rental property or sell at full market value with added value. Within walking distance to incredible Mt. Lebanon schools - 0.1mi from Lincoln Elementary (10/10), 0.9mi from Jefferson Middle School (10/10) & 0.9mi from Mt. Lebanon Senior H.S. - you can be comfortable knowing you will never have vacancy and will attract long term tenants. With little maintenance required, this will be a solid cash flow rental for years to come.

Property Details
SF: 1,270
Bed #: 4
Bath #: 1.5
Current Rent: $1,300 (Tenant Expires 3/31/17)
Yearly Maintenance: < $250
Property Tax (County & School): $3,576
Insurance: $918
Potential Rent: $1,500-$1,600
Full Market Value: $211,000
Comps: https://tools.reikit.com/projects/545/comps
Additional Photos: https://goo.gl/photos/eTfAYcfjmhMS6NFS9

Asking Price: $175,000 OBO

Contact:
Austin Mudd
412-444-5027
858-444-7075 (cell)
www.valterrahomes.com
[email protected]

Viewings will be coordinated to fit best with the tenants living situation.

I'm living in Pittsburgh for the next year or so until I am relocated for work. I have been hunting around for a 2-4 unit in a few particular neighborhoods but there isn't too much product around. A SFR just came on market which looks like a great deal (it needs no work done and it's price reasonably @ 190k.). It's a 4 bed 2 bath house where each bedroom could easily be rented $650 so I would easily cover my mortgage. My current living situation is with someone who bought a house and is renting to me and another few roommates.

I've been wanting a 2-4 unit since it would be easier to rent it as an out of state owner. I'm not sure how I should be thinking about renting a SFR out of state though.

The neighborhood is one of the most popular neighborhoods for college students and young adults. It's walking distance to nightlife/grocers/fitness/retail but it's farther away from the higher drunken area. 

I'm thinking you'd most likely be looking at students to rent a 4Bd house out of state, unless you were able to find a family or mix of young adults to rent the space. I'd like to pick up a 2-4 unit, but this is a house I think is worth looking into.

I'm working with some out of state homeowners who are interested in selling a SFR in Pittsburgh. Here are the details

Price: $150,000 - Homes have sold anywhere from $120k-300k in the surrounding few blocks. Actual value is probably closer to $170-180k

Neighborhood: Nice updated 1300 sf 4/1 home located right around the corner from one of the best elementary schools in the area; high-income neighborhood; other middle school and high school is located very close; walking distance to some shopping, restaurants, coffee shops; very safe

Rental Rate: $1,300 + utilites tenants on a 18 month lease which expires end of April 2017. Tenants want to renew and love the location. Tenants always pay, but pay late and pay late fee of $1350

I'm trying to work with the homeowner in deciding if they should renew the lease or push for a higher rate. Here are my thoughts, I wonder if anyone shared the same or different ones. The sellers are concerned if I can't bring a buyer in, they will have to deal with re-tenanting the place and don't want to do that. If they renew, a 12-14 month lease, they can come back in the Summer 2018 to get the place re-rented.

Renew the same rate:

PRO

They're guaranteed their $1300 income in case there's no deal.

A third party investor will have guaranteed income in a great neighborhood that attracts long term tenants

CON

Investor may pass due to sale price being quite high relative to the income (although the property still cash flows very well if you don't take property management, vacancy, repairs, and capex)

Increase rental rate

PRO

Market could support $1,400 I think, and gets you a better return and is a more attractive deal.

CON

If tenants can pay extra $100 a month, they're stuck looking a a new place before their lease ends 4/30/17 and the seller has to re tenant, which they very much DON'T want to do. 

I'm working with some out of state homeowners who are interested in selling a SFR in Pittsburgh. Here are the details

Price: $150,000 - Homes have sold anywhere from $120k-300k in the surrounding few blocks. Actual value is probably closer to $170-180k

Neighborhood: Nice updated 1300 sf 4/1 home located right around the corner from one of the best elementary schools in the area; high-income neighborhood;  other middle school and high school is located very close; walking distance to some shopping, restaurants, coffee shops; very safe

Rental Rate: $1,300 + utilites tenants  on a 18 month lease which expires end of April 2017. Tenants want to renew and love the location. Tenants always pay, but pay late and pay late fee of $1350

I'm trying to work with the homeowner in deciding if they should renew the lease or push for a higher rate. Here are my thoughts, I wonder if anyone shared the same or different ones. The sellers are concerned if I can't bring a buyer in, they will have to deal with re-tenanting the place and don't want to do that. If they renew, a 12-14 month lease, they can come back in the Summer 2018 to get the place re-rented. 

Renew the same rate:

PRO

They're guaranteed their $1300 income in case there's no deal. 

A third party investor will have guaranteed income in a great neighborhood that attracts long term tenants

CON

Investor may pass due to sale price being quite high relative to the income (although the property still cash flows very well if you don't take property management, vacancy, repairs, and capex)

Increase rental rate

PRO

Market could support $1,400 I think, and gets you a better return and is a more attractive deal. 

CON

If tenants can pay extra $100 a month, they're stuck looking a a new place before their lease ends 4/30/17 and the seller has to re tenant, which they very much DON'T want to do. 

I am running my own website,  and a partners website, through Investor Carrot. I am making an effort for 2017 to put more time to help drive SEO results to both our websites. 

I'm looking to spend a few hours a week on helping to do this and I'll be spending more time looking at IC's resources, but it's definitely been challenging as I know nothing about SEO marketing so I'm not sure what i've done is even effective.

What are the best tools to track SEO results and websites to comment and drive SEO by back linking? If anyone has any other general tips that would be so great to hear.

I'm looking for free and affordable options as I don't have the budget to hire someone for SEO currently.

Nice post! As I'm starting out, I'm currently getting pre-approved before making offers. I have seen some property that need lots of work. As a first project for instance, I'm looking at something that has a purchase likely at $75k and an ARV at 200, maybe up to 220. I don't have the experience to visually estimate repairs, but the property is a hoarder house and needs a lot of work. I can throw in an overestimation of 70-80k of repairs and come out on top with 30k profit after holding costs. There are other complications. For instance the rowhouse is zoned SF, but it is a duplex metered separately. The two bathrooms are tiny and have no sinks. So I assume there has to be an expansion to the bathrooms. If I got to the stage where an offer is put out and I have a GC walk the property, will a GC take care of directing the rehab, telling me what work needs to get done to get it in a condition to sell? How does this conversation go, when you have no clue what each line item of work needs to be done due to inexperience ?