All Forum Posts by: Christian Beyer

Dan- my brother and I might be interested in partnering on this project. We invest in Phoenixville and are very familiar with the area and rental rates. We also have a contractor that we know and trust. Shoot me a message!

Christian

@Arianne L. Great story- thanks for sharing so concisely! Motivation for the rest of us.

Hey Eric, If you want this to be a long term rental, I would recommend you focus your search more on the long term rentability of the space than on which neighborhood will appreciate more. You may likely find that your two options for purchase in Chinatown/Northern Liberties cost about the same, but a two bedroom apartment could rent for 150-300 more per month than a one bedroom in 2 years when you move out. I usually use Zillow for finding the average going rates for rent in an area, but any real estate agent could also help get you the figures. Good luck! Christian

Thanks Alex- unfortunately the same bank has two of our properties leveraged against our business line of credit, which we tapped for the renovation. They will likely want to see something on paper that looks like a market rent lease in some capacity.... thanks for the support!

Hello fellow BP members, My brother and I are looking at a BRRRR project for a home in Phoenixville, PA that we have purchased and begun the renovation. Under normal circumstances in this healthy market we would have no trouble renting at market rates and getting the approved refinance with a familiar local bank that has already agreed to refi at the end of the rehab. We have decided to rent this home to a low income family in need of housing. Our target rent for them is around 2/3 market rent which will just barely cover the mortgage. At this rate the bank would likely not approve the refi. We are pretty established in this market and have a dozen other rentals in the area, so we are less worried about the positive cash flow, we just want to do some good with this unit. My thought was that the lease could be for market rent with a clause providing a business credit, from us each month, bringing the rent to a level that the family can afford. I have no experience in this and have no idea how the bank would react. If anyone has any thoughts or experience on this topic I’m sure others may benefit from it in the future! Thanks! Christian & Erich in Phoenixville

I’m in the same boat- thinking that it might be a good option since I have an old 401K that isn’t doing anything but sitting. Don’t know the first steps.... how did you start?

Hey Everyone- we are hosting a Bigger Pockets meet up in Phoenixville on Wednesday November 2nd at 302 Buchanan St. We are finishing up the 'Before and After' of our flip and split after the duplex that we purchased. Please contact me if you are interested in attending- should be a night for learning! Bring your imagination, ideas, and buyers! Phoenixville is near King of Prussia, Pottstown, West Chester, and is about 30 miles outside of Philadelphia.

We are having a real estate investors meetup tomorrow evening for anyone in the Phoenixville, Collegeville, Spring City, king of Prussia, and greater Philadelphia area. See you at Better Homes and Gardens on Bridge St in Phoenixville at 7 pm tomorrow, Wednesday June 22! Find us on Facebook as well!

Hi Lan, I am located in Phoenixville out in the suburbs a ways but I may have something that meets your criteria. Message me for more info.

Also- don't take the 2% thing as gospel. I've spoken with other investors and the problem is 2% properties typically are trying to get blood from a stone. You purchase super super low and get average rents... meaning that your property is generally in bad condition upon purchase. There is a sweet spot between 1.5% and 1.7% where you did a good job with your purchase price (but didn't buy a dump or one in a war zone) and you got quality tenants in that are paying market rent.

Hey @Rich O'Neilllet's get together sometime next week and discuss details. It'd be great to get another set of eyes on this. 

I spoke with hard money and he is ok to cash out early if the renovations only take 6 months, which reduces my cost of debt by $14K. He will refi out at 85%, and now I just need to propose this to the bank.... and get it accepted. 

@Jessica WiseI am having trouble finding someone to do 90% LTV. Did you use a local or a national bank?