Are any of you flipping homes here? (Lawrenceville: apartment, rent)

[WhoIsStanwix?]

Originally Posted by Paul2421

I think you are realizing the value proposition of the suburbs to some people. You can have the house you want and a well rated school district for your child in a "safe" area. Can get a house that you would pay double or triple in squirrel hill for the same amenities. Obviously it will lack the city aspects but it is a short trip and there are trade offs to everything.

Yeah I am not just realizing this now, I have always known the suburbs appeal to many, and the reasons they do. Walkable amenities are all but non-existent in most of our suburbs, so they aren't an option for me, and I actually prefer what the city schools have to offer over suburban districts. I do understand the appeal to many, though, and I don't begrudge anyone for their choices.

The issue at hand here is whether a live-in rehab makes sense and how that has impacted our lives. On the surface, a live in rehab makes tons of sense, maybe even a live in rehab multi-unit property. If I were still single I would probably be doing that right now. It definitely takes a good plan, a smart budget, and some know-how to make it work financially. It is better if you have the time and skills to do some work yourself, both things of which I lack, especially the time one, as I put in a lot of hours making my paycheck. And lastly, getting to know your neighbors and treating them as if they will be life-long neighbors is important.

[brother_rebus]

Many good lines of feedback.

I'm not trying to be some martyr and get away with being in debt after just for the greater good. But in the same breath, I have no interest in selling something (more importantly somewhere) that is way out of the surrounding neighbors' pricepoints. The only exception to this would be if it were a place with a view. But then again, any of the current residents sitting on that type of parcel could make a killing if they played their hands right.

Luckily I do have some tools and a good chunk of know-how. But it takes two unfortunately. And my woman has no experience/interest. One of the bigger challenges, is I'm out of network. i.e. dont have go-to plumbers, electricians, granite guy, mason, etc. which unfortunately can not only change the quality and quickness of work, but can make a couple dozen thousand difference in price.

Lawrenceville is probably out of my price range, and interest range. B/G could be a nice spot. Gotta get on zillow and see what the market is like for all those back streets off liberty jammed up in alleyways and one way ****show streets. Definitely a draw for hospital workers, etc.

In doing a little more research over the weekend, FHA vs. HUD seems the clear choice. Especially if this isn't something I'm looking to hand down to kids.

Anybody here (maybe guy2073 ?) LLC'd in PA? Wondering if that carriesa difference or if there may be any benefit in this situation, or whether it would be exclusionary towards the FHA program.

[gg]

Originally Posted by gg

Here is my suggestion. Buy a home in Etna or Sharpsburg and live in it while you fix it up. If you keep it for two years it will then be a primary residents and if you make money on the home when you sell it, you don't have to pay a nickel of taxes on the profit. Move to another home and repeat. All this time you are living in the homes. I have done it several times and it worked out quite well for me and it worked out very well for the towns I rehabbed the homes in because when I sold them they could collect taxes on that higher rate. Win win for all.

Guess you are ignoring my ideas. I have flipped several homes and was licensed for over 20 years. Good luck.

[guy2073]

Originally Posted by gg

Guess you are ignoring my ideas. I have flipped several homes and was licensed for over 20 years. Good luck.

Forbes Welcome


If you created an LLC you will need alot more income verification and a larger down payment to secure a loan. I will use an equity line on one of my properties if i see an opportunity for a deal, going through the mortgage process can take some time, I just like to cut a check with a quick closing. I have slowed down since I got sick, so I have not done anything in the last 3 years.

My wife likes when we flip a house, I personally hate it. I like to keep a place for cash flow. The key to flipping a house is being in a good market, getting a good purchase price, keeping costs down to a bare minimum, providing a beautiful end product, and getting it done quickly.

[sky329]

Originally Posted by gg

Guess you are ignoring my ideas. I have flipped several homes and was licensed for over 20 years. Good luck.

nobody wants to live in etna or sharpsburg..(at least that I know of)..


one of the best flips is a live in multi family unit.. research (forced appreciation).. multi families go nuts with forced appreciation and the value skyrockets

[WhoIsStanwix?]

Originally Posted by sky329

nobody wants to live in etna or sharpsburg..(at least that I know of)..

And nobody wanted to live in Lawrenceville 10 years ago or Garfield 5 years ago. I don't think either Sharpsburg or Etna are awful places. The riverfront developments and bicycle trail expansions are likely to improve values as well as desirability in those locations. It is a matter of personal preference whether one wants to live there while waiting for appreciation and a matter of personal evaluation of likely appreciation and appetite for risk whether it makes sense for an individual to invest. But to say "no one wants to live there" is another example of foolish closed-mindedness.

[sky329]

Originally Posted by WhoIsStanwix?

And nobody wanted to live in Lawrenceville 10 years ago or Garfield 5 years ago. I don't think either Sharpsburg or Etna are awful places. The riverfront developments and bicycle trail expansions are likely to improve values as well as desirability in those locations. It is a matter of personal preference whether one wants to live there while waiting for appreciation and a matter of personal evaluation of likely appreciation and appetite for risk whether it makes sense for an individual to invest. But to say "no one wants to live there" is another example of foolish closed-mindedness.

nahh ur wrong... I am correct that nobody wants(at least your average Pittsburgher) etna or sharpsburg for sure.. they are not city proper for one(the main reason Lawrenceville and Garfield are coming up) and the housing stock is not Victorian like the latter... and when I reply it is well thought out and not foolish.. there is absolutely no rental demand in those areas and they are rusty yinzer heavens filled with old timers that let differed maintenance take over

[safak]

The problem with rehabs in the popular areas are that there are so many eyeballs on them, anbd experienced ones they know about what to go up to where the risk of losing money is minimum. You won't get a great deal unless its a old person you know and don't mind ripping off on a for sale by owner.

Just buy a 25k rowhome in hazelwoods lower section and get ahead of the crowd.

If you want something bigger there is a big house on gertrude up i think for 40k, right between 2 pretty nice houses that sold recently for a lot (in hazelwood, both sold for 80k+ in the past couple years, which i believe are 2 highest sales down there for sfh) .
be warned the house needs a lot of work to be nice. a lot, but probably not that much to be livable, someone lived in it until about a year ago.

[jea6321]

Originally Posted by WhoIsStanwix?

The issue at hand here is whether a live-in rehab makes sense and how that has impacted our lives. On the surface, a live in rehab makes tons of sense, maybe even a live in rehab multi-unit property. If I were still single I would probably be doing that right now. It definitely takes a good plan, a smart budget, and some know-how to make it work financially. It is better if you have the time and skills to do some work yourself, both things of which I lack, especially the time one, as I put in a lot of hours making my paycheck. And lastly, getting to know your neighbors and treating them as if they will be life-long neighbors is important.

live in multi unit flips are one of my favorite flip strategies. Especially for younger persons that dont mind sacrificing living in an apartment for a couple years over their own SFH. Ideally a 4 unit works best. Live in one and fix each unit up as they go empty. If bought right, 2 units should come close to covering your mortgage, so even while working on one, you are still living for cheap. Adjust rents to market and sell 3-5 years down the road. Or just keep it for the cashflow. This is a great low risk option. There are lots of ways to add value and multiple exit strategies. On top of that, you get to depreciate the property, write off repairs and common utilities, and then when you sell, you can keep all the profit tax free if you lived in it for 2 of the past 5 years. This make it a good idea to keep it for a couple years after moving out to maximize the return. You can get 2-3 years of cashflow and then still sell tax free.

a first timer can do this with a FHA loan and not only have a low 3.5% down payment, you can also utilize up to 6% seller assist to help with closing costs. Also, you can use 75% of the current rent on the property to help you qualify for more loan. So by doing this, you can buy a more expensive property in a better area, that allows you to live for much cheaper and has way more upside potential than just buying a single family.

[sky329]

Originally Posted by jea6321

live in multi unit flips are one of my favorite flip strategies. Especially for younger persons that dont mind sacrificing living in an apartment for a couple years over their own SFH. Ideally a 4 unit works best. Live in one and fix each unit up as they go empty. If bought right, 2 units should come close to covering your mortgage, so even while working on one, you are still living for cheap. Adjust rents to market and sell 3-5 years down the road. Or just keep it for the cashflow. This is a great low risk option. There are lots of ways to add value and multiple exit strategies. On top of that, you get to depreciate the property, write off repairs and common utilities, and then when you sell, you can keep all the profit tax free if you lived in it for 2 of the past 5 years. This make it a good idea to keep it for a couple years after moving out to maximize the return. You can get 2-3 years of cashflow and then still sell tax free.

a first timer can do this with a FHA loan and not only have a low 3.5% down payment, you can also utilize up to 6% seller assist to help with closing costs. Also, you can use 75% of the current rent on the property to help you qualify for more loan. So by doing this, you can buy a more expensive property in a better area, that allows you to live for much cheaper and has way more upside potential than just buying a single family.

this is literally exactly what I did