All Forum Posts by: Cedric Zebaze

Since it's two deed and the seller is giving up a bundle deal it would of been best if you had cash to close the deal. You might have to find a hard money lender that will blanket this deal together. 

@Patrick Duque Start studying the cap rates. What actual return do you want on your investments? 

Do you want a property that act like a bond or stock? low risk- low return or high risk - high return or something in the middle? 

Once you figure out that number, are looking to force appreciation($10,000+) or buy something close to turnkey($5,000-$8,000 for cosmetic move in ready)

Might take you a year @Nicole Brown, might have to get creative & find a 4 bedroom w 1-2 baths and rent out 1-2 rooms. 

Philly makes sense to me, can't forget that average 3% appreciation still occurring since 2000's. Accelerating in some neighborhoods. You can find some sandwich deals in philly (Forced appreciation - Cash Flow - Appreciation). 

I'm learning now there is no rush, keep searching most ppl will take 12-18 months to find there "perfect property". 

There's houses below $250k that hit the 1% Rule.

Questions is what type of tenant pool are you after? ..young professionals, section 8 or low income families, middle class families , mix, college grads, college students.etc?

Being a buy and hold investor takes thick skin, I'm learning that everyday. As buy and hold investor you want to buy based off ( location, location , location!)  look at the cap rate and see if you can improve it via forced appreciation.

If the area is B class hitting 0.8% that's good too. The higher the percentage the chances of the area being sketch. 

Don't expect home run deals but avoid money pits. If you can even cash flow $100 a month by your second year holding that's even good news. 

PM me if anything, I live right in Brewerytown and have a rental in Manayunk. 

Send me a PM, your numbers are but aggressive theirs duplexes near the city but they pop up occasionally and go fast for the price you want. 

Congrats on the deal!

Look likes the house is pending at $625k

::eats popcorn::

 $100k rehab doesn't make sense NOW unless the home was around $25k. 

1% rule (typically) accounts for the sunk cost, capX, fees etc Example = $1000 rent to $100,000 acquisition price( home price and rehab)

$1300 rent to $200,000 acquisition price is .6 in a D/C class area. 

IF the neighborhood is desirable then a .8 or higher is a good. 

If you have the resources, you could get it inspected and use the inspection to bring down the price of home. SOUNDS like the home is actually $60k and you can put in about $40k of work rent it out. That way you can brrrr plus cash flow and even bank on future appreciation since the area is being revitalize.  Then pull on the trigger 3-5 years from now for a sale or upgrade on the rental. 

Honestly you can always go back to school.

There's a bunch of people who hit FI(financial freedom) and still work.

No Shame even if you go back. 

It take unconventionally thinking to be great at what you do sometimes. So if you spend hours honing your craft your bound to be successful(with proper mentors). 

Since you are in sales(I'm in Fitness Sales as Regional Manager) Best part of about Sales, every business needs it.