All Forum Posts by: Chaim Hoch

It sounds like you are on a very small margin. It may be a good idea to rent and refinance this deal. Sometimes you can get higher appraisal values from appraisers than from buyers. If you can pull out most or all of your cash on the refi and the property cashflows, this may be your best option.

@Leon Lee

Hey Leon,

I’m a MF investor from Pittsburgh PA and I totally feel your pain here (I have experienced this a few times). From the details you’ve given it seems highly likely you’ll need to replace all or most of the tenants for the property.

If it were my property I would begin the eviction process immediately (subject on the current legalities involved in your state).

I would still keep open communication with the tenants and give them every chance to make good on their rent payments to you and reinstate them if they show good faith. But all whilst forging ahead with eviction process. Keep the process on a tight leash and don’t allow yourself to be talked into delaying the process. It’s at these moments that as a landlord you may get to see some Academy award worthy performances and stories from tenants.

It’s a tough balance but try to remain firm but compassionate!

Wishing you best of luck with it!

Chaim

@Tony Robinson thanks for your feedback!

I try to work on a few loan options from the start so we don’t get stuck relying on any particular lender.
 

Investment Info:

Single-family residence fix & flip investment in Pittsburgh.

Purchase price: $160,000
Cash invested: $200,000

The sellers originally listed this property on the market for $250k but after months on the market we managed to purchase it at the favourable price of $160k.
The property requires a full top to bottom rehab but we are preserving a lot of the character elements of the property such as the original fireplaces and the broad staircases. We expect to sell by June 2020 for $500k

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

Although we are primarily buy and hold investors, the fix and flip business helps our cashflow and drives the growth of the main business.

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

We found this deal on the MLS. It had been on the market for about a year with no activity and so we went in with a low ball offer and settled at a a very favourable price.

How did you finance this deal?

We lost about $15k on day one actually due to the financing structure. We had brought the deal to one of our best bank partners and in a freak turn of events they couldn’t process the loan in time for closing. We had to close with a hard money lender which was very expensive. We eventually refunded the loan with our preferred bank but not before losing a boatload of cash to the ‘hump’ in the road.

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

Chris Clark at Riva Ridge Real Estate Services in Pittsburgh is a master at real estate who we try to work with on all our deals. Adar Ben-Lapid at Coldwell Banker in Squirrel Hill is a top level realtor who is one of the major catalysts for the early growth of our business.