All Forum Posts by: Max Feinberg

Hello Josh!

My sister is a lender with First National Bank and I know they have some good loan programs for first time home buyers. While your situation is a unique one, I am sure she would be glad to answer any questions you may have.

PM me for her contact info!

Hello Christopher!

Thanks for posting this deal. I always enjoy analyzing specific deals to get the opinion of everyone else on this site. In this case, I have to think you need to rethink the numbers a little bit. As a realtor in the area, I can speak to the Wilkinsburg market and I believe you have both the rent and the ARV overvalued. I have run a quick search out of curiosity on the local MLS, and there has been only 1 multi unit building that has sold for over 100K in Wilkinsburg over the last 6 months...and that was a fourplex. There have only been 2 single family homes that sold for over 100 in the last 6 months.

While you did not mention how many bedrooms or baths each unit is, so I cannot properly speak to the approximate rent, I am confident that it would not be near as high as 3500 a month. My advice...stay far away from this deal. 

Do you live in the Pittsburgh area?

Hello Philip!

I am an agent in the Pittsburgh area and would love to help you in your search. As Brian said, there is no wasting our time...it is our job to assist! I work with many investors, including a couple from California, so please feel free to reach out with any questions you may have.

Hello Adrian, I was wondering the same thing and came to the boards to find an answer. I am specifically wondering what is appropriate for the Analysis over time portion of the Calculator. How much is typical for expense increase? Income increase? I know property value is highly specific to the area, but what is an expected range? As far as vacancy, repairs, management, cap ex, I generally lean towards being very conservative in my estimates. It can only help in the long run. Vacancy rate at 10 percent is a good number, while a lot of people like to use the “1 percent rule” for repairs and maintenance. While this is generally a decent estimate (1 percent of the property value per year), it is not always accurate. We are all aware that there are PLENTY of 50k properties that need a lot more in repairs than a 500k house. So I use that rule with caution and only as a starting point. Management fees for single family homes are generally around 10 percent of the gross monthly rent per month. Hope this helps a little bit. Max Feinberg

Hello! I have a question that may or may not be a dumb one as I am relatively new to real estate investing. If I were to buy a duplex and borrow the 20 percent down payment from someone, in this case about 35k, is this subject to review under the Patriot Act? Doesn’t really matter to me one way or the other, I am just curious as to how the Patriot Act applies to receiving loans from family/friends/investors for a down payment. Thanks Max