All Forum Posts by: Alex Uman

@Andrew Powers My team was DTS on this one to bring it to my investor!

Investment Info:

Single-family residence buy & hold investment in Darby.

Purchase price: $135,000
Cash invested: $30,000

Three Properties for the Price of One! This package came at a steep discount with tenants in place. Endless opportunity to add value and boost the rents over time on a nice quiet block in Darby, PA. My investor jumped at the opportunity to get these rentals at such a discounted price. They're planning ~$10k in updates to each of the properties to appraise at $80k+ a piece, pull out their entire investment and then some then cashflow $500/mo with the current tenants or even more with new ones!

Investment Info:

Single-family residence buy & hold investment in Darby.

Purchase price: $135,000
Cash invested: $30,000

Three Properties for the Price of One! This package deal came at a steep discount with tenants in place. Endless opportunity to add value and boost the rents over time on a nice quiet block in Darby, PA. My investor jumped at the opportunity to get these rentals at such a discounted price. They're planning ~$10k in updates to each of the properties to appraise at $80k+ a piece, pull out their entire investment and then some then cashflow $500/mo with the current tenants or even more with new ones!

I would not take that risk. While you may think you'd get away with it simply using it as your mailing address for now, come tax season you may be in some trouble when you need to report income on a pseudo-primary residence. Banks make those loans for people to buy their first home to live in. I doubt that seeking to abuse that program for profit will not be taken lightly by them when they inevitably find out.

You take the first step into the unknown in updated an out dated property in an area lacking modern finishes. You may not get the lofty appraisal value you seek in the short term but in the long term you may end up sparking a trend toward such rehabs in the area you are investing in. Tough to say without knowing anything about the market you're investing in.

Good luck and all the best!

I like Option #1. I wouldn't spend more money to vacate units when you can simply purchase it for the price you're getting and wait it out. Option #4 also would provide you with the most secure investment though your rehab will take longer you will have less vacancy overall.

Offering cash for keys or paying more for a vacant property sound like a waste of money to get the job done sooner than it needs to be.

Good luck with this project! Sounds like a pretty lucrative cash flow opportunity/a great long term hold.

I always recommend my buddy @Robert Gorra. He is local to the area next door in Northern Liberties and refuses to cut corners on his jobs.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Pottstown.

Purchase price: $159,000
Cash invested: $1,000

The most turnkey rental deal I've seen up in Pottstown. My investors made the right move to pick up this cash-flowing duplex which grosses $2200/mo with the detached garage being rented out to a local mechanic. The units were in great shape with excellent tenants taking care of the property and paying rent on time every month. With next to nothing in rehab needing to be done, they hope to appraise and refinance at $180k+ to cashflow $700/mo or even more with higher paying tenants. Being local to the area, this deal made the most sense for them to move on and we were able to close on it in a week!

I've been investing in a few REITs since before I started working in real estate. I utilized these investments to start getting some exposure to real estate before investing myself. Many REITs got hit hard with COVID, many still aren't paying dividends (especially those based on retail/commercial investments). Others have rebounded well and paid back dividends that were put on hold during the height of the pandemic.

Do you invest in REITs? What are some of your favorite REITs to invest in right now? Have you bought or sold recently and where do you see the market going?

Investment Info:

Single-family residence buy & hold investment in Upper Darby.

Purchase price: $60,000
Cash invested: $10,000

Contributors:
Robert Gorra

The most no nonsense Upper Darby rental deal I have seen yet! In great shape this property only needed minor cosmetic rehab to appraise at $100k. With a good tenant willing to pay more in rent this remains one of the best rental deals I've sold in the area. The investor who moved on it ran his numbers and decided to scoop it up within an hour of seeing it. Congrats to @Robert Gorra for buying this rental!