All Forum Posts by: Alex Capozzolo

Hey BP ! 

Seeking some feedback on anyone who has experience buying at Philadelphia's Sheriff Sale! Any best practices that have worked for investors purchasing properties to BRRRR?

Is it common for people to just wholesale properties from the auction? 

I know some risks are getting stuck with a property that needs much more work than expected, or getting a property with a huge state lien on it. Any others that an auction newbie should consider?

@Sean Walton Agreed about the potential Airbnb venture! Along with that, you could also bank on the Superbowl coming back to the Bay Area and REALLY cashing out ! Haha

And you're right about BART, it's definitely not new news. If were playing very long-ball investing, you can start building a strategy around the plans for the Bullet Train in San Jose; would be so awesome to see that happen, but who knows if the timeline / plans for that will speed up or slow down over the next few years

@Jeongmin J. Downtown SJ is great and continues to flourish, especially from the BART extension like you mentioned. There are a ton of new condominiums shooting up around San Jose. It may be worth it to hop on one of those early on!

Some buyers/sellers think that the bigger name brokerages are just out to screw them. Also, the monthly costs to work for a bigger brokerage can sometimes be higher. 

@Levi K. I applied to Roofstock before I became an agent.... didn't get the job haha however I will say that when I was applying, they told me that an investor came in and bought all the properties from them in the Bay Area neighborhoods. So some people must think it is decent, or know something that we don't. 

@Mohammad Haidarasl FHA is a great and inexpensive way to get into your first rental, but does come with the catch of living there for a year. Comparing it to a conventional 20% downpayment loan, FHA requires MIP (mortgage insurance) until the loan's LTV reaches ~80% (meaning you have paid down 20% of your mortgage). So that is an additional cost that you must factor in to your overall monthly expenses when calculating potential cashflow for a property you plan to purchase via FHA. Also, your strategy depends on how your current cash situation and if you want to tie some / most / all of your capital into one spot, or try to spread it out! I hear great things about San Antonio, hope the market is treating you well down there !

@Matt Foster The Cap Rate method would be better than nothing since there aren't much comps like you said. You can also try reaching out to a local agent in your area. They may be able to pull a quick MLS report for you that is more refined than pulling from zillow, redfin, etc.

@Todd Williams You don't have to do it through a brokerage. I completely my courses through an online company, which was nice since I could do it whenever (also an easy way to get lazy). Sorry to hear about the startup ! Let me know if you have any questions

Lol to that last line in your post. I write my goals on paper and tape them to the door in my room at eye level so I see them every day. I speak them sometimes too to keep them top of mind! Then I break down actionable steps necessary to hitting the goals and do them as soon as possible. Hope you can hit your goals this year @Scott F.

@Jason W. How much would you be able to rent out the home that you were gifted? If it cashflows strong, it may be a good option to keep as your first portfolio home. But if you're interested in strictly investing in Multis to scale up, the VA loan is a great and inexpensive way to start that journey. Good luck !