All Forum Posts by: Jay Belcher

Your overall numbers work, if your rehab budget is correct. As others have pointed out though, it seems like you're trying to get a lot done for $29K. Also the concept of the work your husband and brother do being treated as material cost only is not really a sound approach as that labor does still have a cost.

I can't speak to Atlanta, but in Pittsburgh you have to be very careful with the comps you are looking at in determining your ARV. Sometimes just crossing the street can make a difference. Neighborhood have these dividing lines that you won't find on any map. However having said that, if you find comps in all directions from your subject house, then I'm more comfortable

@Laura Srocki - yes I'm a big fan of BRRRR, but I don't think you need to avoid flipping based on risk, etc. There's a lot of great strategies, it comes down to doing your homework on the property and getting the right education (BP is a great place to start!).

I belong to Pittsburgh REIA. I think it's just PittsburghREIA.com. I used to belong to ACRE as well but now prefer REIA.

Welcome @Laura Srocki. There are lots of Pittsburgh area investors and BiggerPockets is a great place to get good information.

You may want to check out one of the RE investment clubs in Pittsburgh. Pittsburgh REIA is a good group I belong to, but it's not the only one.

Welcome @Darien Terrell. There are lots of Pittsburgh area investors and BiggerPockets is a great place to get good information.

You may want to check out one of the RE investment clubs in Pittsburgh. Pittsburgh REIA is a good group I belong to, but it's not the only one.

I say get the title insurance.

You need a title search or you don't really know what you're buying. A lot of foreclosure work is done fast and furious and it's not unheard of that a lien holder was not properly served in the foreclosure process and can later assert a claim. The cost of the search is included in the insurance - if you pay for a search alone you have a chunk of the policy paid for. If you go it without a search you're putting yourself at risk.

Also you're probably getting a special warranty deed when you buy, so be careful to sell on a special warranty deed, particularly if you forego the title insurance. Otherwise your guaranteeing a clear title beyond the time you owned it. (Disclosure:  I've been doing this a while but I'm no title attorney - contact one for real answers to your questions!)

Some subscribe to the kick the seller with a super low offer concept and it can work but it will also piss off some people. I understand why people do it, but I prefer to say "Hey here's what the comps are showing, and I can pay that under the right terms. But if you need all cash it's got to be substantially lower. I'm an investor and I don't pay retail."

I would count the fair market rent of your part of the duplex in the evaluation. The 1.2% thing could make it a good deal or not. Those kind of evaluations are very neighborhood specific - you can get 2% some places - even more. Other factors to consider:  is it desirable to renters, how much maintenance will be needed, how much cash out of pocket are you, and on and on.

Like @Bill E.said, you do need to run the numbers to see if cash flow suits you. Also you need comps to come up with some number of value. Really the comps come first and then the cash flow. Some neighborhoods don't cash flow well, but that doesn't mean the property isn't worth what the comps say.

From there share the numbers with the seller, making adjustments for condition. Then when it comes to offers I would offer the full amount on terms or a discount amount in cash.

Welcome @James Edward Freach

Pittsburgh is a great place to invest. Check out the local investment clubs - they are a great way to meet folks doing what you want to do. Do a search for Pittsburgh REIA and for ACRE.

Also lots to absorb here on BiggerPockets.