All Forum Posts by: William P.

Any updates from your experience or bump for someone else to post!

Hello Shai!

I am near Pittsburgh and am interested in this concept. Please keep us posted if you make any headway! I suggest starting first with the Housing Authority in your area and asking if there is a housing specialist you could speak to for options. That was my first step for learning more about the various different agencies in my area that are looking to make partnerships with landlords.

After analyzing in more depth after figuring out more scope of the work and how they appraised my house next door, the margin was just too thin and they wouldn't take an extreme low ball offer. Appreciate all the insight everyone! 

This was the game plan I plan on pushing forward tomorrow. My impression is they are wanting more than what it is worth based on how long they have been letting it sit vacant. Fortunately, I just moved here and have had zero interactions with this neighbor since it has been vacant for some time.

Hey Theresa,

I have been thinking about doing something like that, giving a list of things wrong to reflect the lower price and going from there.

This is an older town that does have these kind of basements within the older homes semi often. Just a project I haven't done and something people often say to avoid, "money pit".

Hey Brent!

Having the basement locked is something I didn't consider, but is interesting! Not sure if the workshop area down there would appear to a tenant, but if not sounds like a smart idea. 

My engineer friend who lives in this area says this kinda of basement is somewhat common for the area and doesn't see anything wrong with the beams right now. With that in mind, I would definitely want to do something with them down the road if it could wait. 

Based on the basement and porch picture it overall seems to be sinking some and my friend thinks if anything just rip out the porch roof since it is extra. I was able to find out the tile roof was done in 1998 and guessing it wasn't designed for that weight and could either be taken down or reinforced.

Appreciate the insight! Biggest thing I still need to feel more comfortable is the comps for accuracy of the ARV and will do more research tonight. My Realtor acknowledged it is harder to guess the ARV due to the smaller area, but going to use the websites and relook over my properties appraisal for more information.

Thank you,

Will

Hello Everyone!

I starting out with house hacking last year, moved into my primary residence, and now have been thinking about my neighbors house that has been vacant since 2019 and not selling. I started working my numbers, getting more information, was hoping you all could provide your insight on this property, and ultimately if I should go further with this or not. It may not be the most ideal BRRRR, but prior to learning about the dirt floor basement and potential shifting back porch roof, was figuring the numbers worked, would be a good learning experience, and the only time to acquire my neighbor house BRRRR wise. Along with the other improvements I can do down the road DIY at my own pace since it's next door. Much appreciated in advance for insight provided as I am still pretty new to rehabs costs, money pits to avoid, and ARVs. Property Listing, Google Drive with Picture of concerns, Comps. 

I linked the listing, pictures of the questionable support beams and dirt basement (maybe back deck roof is shifting? 1998 tile roof), and local zillow comps. ARV wise based on the comps I am hoping would be around 110k, with some properties this year going for 120+, but last year across the road a property went 77k which is confusing. My property next door, different type of house, appraised 20k more than purchase price. Contrary to the pictures, all the flooring besides the kitchen and bathroom tile is now bad hardwood floor. The seller recently ripped out the main floor LVP that they just remodeled due to the hardwood underneath bowing, I assume due to the dirt basement floor. They bought and have carpet scheduled to be installed by Lowes next Thursday. I assume for the BRRRR numbers I would have to get a contract going asap to stop that from happening or else they wont accept a lower purchase price. This does seem to be a possibility, as the property is currently off market and once my realtor acknowledged I wouldn't be interested in this property with carpet, hurried up to let me into the property.

I overestimated the flooring costs for 6k carpet for now, intend to remove the back deck steps, and just make a balcony to reduce liability with those steps. The basement and potentially shifting roof is what I am unsure about if I need to do something for either the acquisition with a mortgage and/or refinancing for the numbers I need to get my money back. If I would have to do something with the basement, what would that be, along with an estimated repair costs, is what I am clueless for now until I do more digging.

Again thank you all so much!

Right now for a free online platform I use https://cozy.io/. It is a great platform until I get more units and user friendly it seems for tenants as well.

Hello Zachary!

With my limited knowledge, as I am looking into LLC's and other tax involvements within PA myself, I ultimately recommend speaking with a good CPA to help figure out what is best for your situation. Afterwards if it makes sense to follow through with a LLC, speak with a lawyer. However I look forward to other's insight who may post on here. Welcome to BiggerPockets there is so much to learn here and best of luck!

So what is the update, how did it go?