All Forum Posts by: Ahmed Elias

@Stefan Tsvetkov thanks for answering my questions. I had actually seen the amendment but then also came across this article below which got me really worried but I guess my concern on rental payments etc can be mitigated with an estoppel certificate. 

https://www.nj.com/hudson/2020/05/union-city-landlord-group-files-lawsuit-to-overturn-new-city-laws-freezing-rent-increases-and-halting-evictions.html#:~:text=Union%20City's%20eviction%20freeze%20ordinance,COVID%2D19%20state%20of%20emergency.&text=The%20freeze%20overreaches%20as%20it,of%20owners%20under%20rent%20control.

Also not sure if this is odd or common but the current owner reached out to me after my attorney told his attorney that the transaction will fall through if the buyer is not able to deliver atleast one of the apartments vacant as per FHA guidelines.

Given how low rates are I was able to get a bank to do 10% down with 2.625 interest rate and was hoping to renegotiate with the seller on the purchase prices saying he doesn't need to worry about vacating tenants.

Hi BP Nation,

I was hoping you guys could help me with my current situation. I'm in the process of buying a 3 family property for 637k (asking price was 650k). The seller has accepted the offer but wants to sell the property as-is. The property is currently fully rented out but under market value. Tenants have been living there for over 7 years and most likely month to month.

I plan to househack using FHA 3.5% down but what's worrying is the rent control part of this acquisition.

Few questions:

1. After acquiring the property can I directly raise the rent to market value given that its owner occupied ? Ex - once I acquire the property, can I increase the rent from 1300 to 1800 during the renewal of the rental agreement?

2. Let's say the tenant decides not to accept the rent increase. Will I be able to evict the tenant given that union city is very tenant friendly ?

3. Also since the tenant is on month to month can I just ask him to leave in 30 days or do I have to go through an eviction process?

4. Also how does rent control actually work in union city ? Is there an official document where landlords could review the maximum allowable rent for 2 bed 1 bath or 3bed 1 bath ?

@Stefan Tsvetkov and @Diana Tian

Hi Guys !!

I was hoping you guys could help me my my current situation. I'm in the process of buying a 3 family property for 637k (asking price was 650k). The seller has accepted the offer but want to sell property as-is. The property is currently fully rented out but under market value. Tenants have been living there for over 7 years and most likely month to month.

I plan to househack using fha 3.5% down but what's worrying is the rent control part of this acquisition.

Few questions:

1. After acquiring the property can I directly raise the rent to market value given that its owner occupied ?

Ex - once I acquire the property, can I increase the rent from 1300 to 1800 during the renewal of the rental agreement?

2. Let's say the tenant decides not to accept the rent increase. Will I be able to evict the tenant given that union city is very tenant friendly ?

3. Also since the tenant is on month to month can I just ask him to leave in 30 days or do I have to go through an eviction process ?

4. Also how does rent control actually work in union city ? Is there an official document where landlords could review the maximum allowable rent for 2 bed 1 bath or 3bed 1 bath ?

@John Knisely

I'm aware this post is a few years old but I was looking for guidance from folks who might know the area.

I came across a 2 family 5bd 2ba 1742 sqft duplex in the Bella Vista neighborhood. Property is bank owned and listed at 319k and is a complete shell. Rehab costs are estimated at 200k.

How much do you think arv on the property would be ?

@Matthew Porcaro Thanks for responding to my posts. FYI: I saw you feature on the House Hacking Success youtube channel and you shared some amazing information. Your tip on finding qualified lenders who specialize on 203K loans was like gold for me :). 

Pasting the FHA lenders database for other newbies who decide to go the FHA 203K way
https://apps.hud.gov/pub/chums/f17fvc/203k.cfm

Your renovation costs sounds really cheap and attractive. I really hope I end up in the 150K range. Im curious do you think you had were able to spend 80K because you have previous construction background? 

I am already in discussion with a few 203K HUD consultants and trying to confirm working with one ASAP. Any tips on what i should be looking for when talking to HUD consultants besides drawls, feasibility fee, have they ever been suspended etc?

Also did you only just get your property upto code and then take over the renovation yourself or did you get the rehab completed a 100% by the FHA 203K GC?

Thanks 

Ahmed 

@Kevin M. Thanks for the tip. I think I might be doing that. Any idea how much it generally costs to have a structural engineer look at a property in South Phili? 

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Hi BP Community, 

I was hoping to get insights from investors who are experts in deal analyzing. Hoping to close on a property next week :) Few call outs: 

1. I am taking advantage of the FHA 203K program - Given that my financials are all aligned perfectly I would qualify between 4 to 5.5% interest rate. I took 5.1% just to be safe.

-    Should I get the property appraised and refinance to conventional as soon as I am done rehabbing the property completely? 

2. I estimated 250K in repairs given that the property is a complete mess. the Property is roughly 2300 SQft I assumed 1000 dollars per sqft given that its a 3 family property + basement. Am I being crazy or am I estimating too low? 

3. As the property will be fully renovated from top to bottom I assumed a much lower capEx rate given that all big ticket items will need to be replaced. 

4. The realtor told me that the property should have an ARV of 650K or higher, I estimated an ARV of 600K just to be on the safe side.

Thanks

Hi BP community, 

I was wondering if anyone could advise me on how critical is it for a property to be inspected prior to closing that requires complete renovation regardless (the property is a complete shell and currently not even close to living condition). I plan to do a walk through with my GC to get an approximate quote on how much my renovation would cost however I was wondering if I needed to bring in a structural engineer to look for structural issues ? Would it be better hiring a structural engineer to inspect the property for structural issues before putting an offer? 

Type of property - Brick row home property in the Philadelphia area.

@Jeremy Chaudet How's it going? I know this post is from a year ago but i was wondering if we could connect. I am looking to invest in the area and was hoping to chat with investors in the area. Is it cool if I DM you? 

@Jimmy O'Connor How's it going? First off kudos on the great portfolio you have :-) I know your post is 1 year old is it cool if I DM you? I am looking to invest in Philly and currently looking to connect with investor friendly realtors who can help me achieve this.