All Forum Posts by: Alan Asriants

I am always looking at flipping opportunities but have been really skiddish due to the uncertainties in the market right now. On the one hand, in my market (Phila), well rehabbed and well priced listings are selling at steady prices, in some cases for even more. I do feel like timing is extremely important because buyers are so sensitive to interest rate trends. You put your house up when rates dip - you win, you put it up when they spike - it cuts into your bottom line. I am making offers, but I would say they are offensive. I don't want to find myself in a position 6 moths later with no equity. What are you guys seeing? Are you accounting for more risk when making offers? 

Hey Santanu, welcome to the community! I have about 10 units in the Phila area and I mainly specialize in the NE section of Philadelphia. This area consists of many Twin style multi-famliy properties that area easy to work with (cookie cutter), and have an incredibly high demand for rent. When I post my listings I am getting about 50 calls the first day. The inventory here is low, and with the current rates you might not be making a killing, but you will not have trouble renting it out. These tenants usually stay for a while since these properties have garages, backyards, and a tight knit community. The tenant pool here is also very good. With a proper application check, these tenants pay on time and take care of your property. Princeton is not too far from here either. Let me know if you're looking to connect, I'd be happy to go into more detail. Hope this helps. 

They have been super annoying lately. Some issues I had were:

1. accountant not filing philly taxes

2. they are enforcing that a manager must live in phila 

3. lead based paint

4. random nonsense that wastes your time because eclipse is a poor system

I recommend raising rents. You are running a business, and as someone said here, not a charity. That being said, if they have been their for a while I would imagine their property condition is not the most updated. Raise their rent based on the fair value of what you would rent it out for if they were to vacate. If you want to be really nice you can cut them a small break (I.E. Fair rent is 1800, you can increase to 1750). It doesn't make sense for you to keep holding at a loss/breakeven. From there, stick to doing annual rent increases. 
Generally the tenants won't be happy, but once they realize they cannot find anything cheaper and the cost of moving out wouldn't justify, they will happily sign their renewal. 

Give them more time than required, and let them know gently. 

Congrats on getting your license, It definitely opens up a lot of doors and possibilities when it comes to investing. For big time investors, the perks of having a license might not make sense for them, but for someone starting out it can be fruitful. Some personal benefits I have seen are:

1. You meet sellers that want to list their home, but you make them an offer that they would take first. 

2. You get access to the MLS and public record data that make finding new listings, comps, and property info a lot easier and accessible.

3. You can use your portion of the commissions as a tax free seller's assist instead. I have personally saved about 50k just by purchasing homes with a license. 

That being said, there is nothing more valuable than having a good mentor and someone who has been investing for a while. It could be your broker or someone completely outside of the Agent space. Find the mentor and enjoy the benefits of having a license! Good luck!

After rehabbing a few rental properties, I get asked: how do you renovate your bathrooms? The simple answer I give them: white subway tile. The reason I do subway tile on my tub/shower surround is because subway tile has been in style since forever. You can find an older home with white subway tile and make it feel modern again without doing a major makeover. Your plumbing and tiling are the highest costs when renovating a bathroom. Why choose a style that might be "outdated" in 10 years? Subway tile is simple and will always look good. I do recommend sticking to the 2x4 tile instead of the squared look. Hopefully your tenants stay there for a long time and when it comes to refreshing your bathroom all you will have to do is replace: a vanity ($240-400), plumbing fixtures ($120-180 for both shower and vanity), maybe your toilet ($200), and vanity light ($100). For under $1000 you made your bathroom look modern again. Retiling the bathroom can cost you thousands alone for the work. You may have to regrout due to prolonged use, but it is still cheaper than retiling. 

For the floor tile I recommend a neutral 12x12 or 12x24 tile with minimal to no design patterns. Stick to cream, off whites, grays for color

Another tip: I used brushed nickel finishes because they are a lot more "water friendly" Black and chrome fixtures can look awful if they are not constantly cleaned. 

One thought out renovation will save you thousands in the future. Hope this helps

@Brian Gula

HELOC could be a good option to purchase your next investment. One thing to look out for is that it will be a floating rate and it could really impact your cash flow. I know you were looking for more appreciation and equity than cash flow, but wouldn't want to put yourself in a position where you're "bleeding" too much

Love the goal man. I was in a similar position as you a couple years ago and it was very stressful to make the jump. Of course when I did, I felt unbelievable relief. But to many of the replies here, I agree with them. That might be too quick of a goal and can become very overwhelming. This is just my advice, and millions of people have done it differently and better than me but here it is in a nutshell:

1. Earn as much as you do outside of your job in Real Estate (for me it was being an agent). As soon as I made as much as I did at my W2, I was comfortable I could recreate it. 

2. Get some traction, and get your first flip done first. That would be a more realistic goal by July 11th. From there hopefully the snowball keeps rolling

3. My dad gave me this advice: once you quit, quit and don't look back. When you work on your own you might have months of no income, and other months you might make as much as your W2. Adjust your mindset when you make the jump.

Best of luck!

Hey Brian,
What kind of properties are you trying to acquire and in what kind of neighborhoods. Philadelphia price ranges can be very wide. All the way from 40k for a townhouse to 500k+ for a duplex. I would suggest narrowing it down first to area, then to property type. Once you know those you should see what those homes are going for. Don't forget to factor in an extra 2.14% in transfer tax in Phila. If you need help understanding property values and closing costs, feel free to reach out. 

will repeat it from Dylan - know what you can afford. Then look at house hacking.