All Forum Posts by: Dominic Lucarelli

I live out here in Irwin. The ARV values tend to be skewed due to the massive amounts of new construction going on out here. People are listing their homes at ridiculous prices, and there are tons on the market out here. There aren't many homes in that area along 993 worth $100k.

Also worth noting, that house was originally setup as a duplex, so it's probably better served converting back to the duplex and renting than trying to flip it for $150k.

Good luck and keep us posted on what progress you make.

After Repair Value (ARV) will be based off your comps. What's similar to your house that's sold in the past 3 months? Those are your comps. If you can't find them, get a good realtor to pull them for you.

Now, that house that sold for $180k in your comps, what does it have that your current target does not? New windows? New roof? Granite counters? Brand new bathroom? Yours better look better than that one to pull in $180k. Is it in a prime location? Located on a busy street? These are all factors that will make or break you.

Gather all the facts before diving in. They will tell you if you have a home run or a money pit.

One thing you might not have considered:

If this home is as old as you say it is, it's probably historic. Check with your local historic society for the old owners of the home.

Also, if it has a story it might be a museum-type piece, I.E. a tourist attraction. Which may or may not be worth more than the value of the home itself.

$5/per tourist x 10,000 visits per year = you guessed it!

If this is true, you can take a small portion of the remaining land, build a bed and breakfast, and make money two ways.

Or, turn that old building itself into a bed and breakfast.

Lots of possibilities. Good luck and keep us posted!

The hardest part about jumping in is the doubt. You simple don't know what you don't know. So my advice for you is to practice.

Analyze 3 properties a day until you get a great feel for it.

Then, attend as many home improvement classes at Home Depot/Lowe's as you can. Get familiar with the costs of things.

Lastly, how do you finance it? Or simply, how much can you afford to lose? It's your worst case scenario. If you invest this amount, and a meteor strikes the property (aka worst tenant ever) and the house is left in shambles, how can you exit?

Continue to improve your mindset. I've found that if you confident you'll do fine.

Good luck!

Personally, I'd add extra to the initial repairs budget. You just never know what could be hiding in those old walls. 

What area is this triplex in? Again, personally I've assumed a higher vacancy rate (10%) and repairs (10%) in all my numbers, just to be conservative. Again, your utilities cost seem just a tad low. $50 average for water per unit + sewage costs + trash pickup. Will you be cutting the grass? If not, add $30+

Have you seen it yet? Never assume turnkey is absolute. Turnkey in Upper St. Clair is different from turnkey in McKeesport...

It sounds like you found a place and need a loan? If so, I'd try to find a small bank or credit union local to your current home or the one you intend to buy.

If that isn't the way you'd like to go, maybe renting or rent-to-own would be a better option for you. I'm sure there's someone in Kansas who knows the Great Bend area.

Best of luck to you

I'm not sure if this has arrived in Pennsylvania yet, but what you're describing is a Series LLC, where one LLC contains all of your "other" LLCs. Now this may or may not be beneficial to you, depending on your current portfolio size and future goals.

**I'm not a lawyer and this is not legal advice**

But...

If you're planning to wholesale or flip, it's better to operate that separate from any Buy and Hold properties you have. The legalities and accounting will be much easier to navigate when separate. The same if you hold a reality license and become a property manager or broker. The rules will be different.

Obviously there are pros and cons:

Pros: 

-asset protection

-ability to quickly add/subtract partners

-ability to scale up or down quickly

Cons:

-costs to setup

-costs to maintain

-more rules to maintain properly

-higher loan rates and costs

-transfer tax due if transferring from your name into an LLC

That's a nice little area, as long as you stay on the correct side of the new busway

Welcome to BP! How far east of Pittsburgh are you targeting? We may be neighbors!

George, looks like we are looking in the same locations! I'm currently scouring the southwestern Allegheny County/Western Westmoreland County/Eastern Washington County lines (all 30 min from my home) looking for deals as well. I know a few other investors looking in my same areas. Maybe we can partner up if you're interested