All Forum Posts by: Eric Greenberg

Tim,

These type of conflicts between tenants can be tough to navigate. Is the property in Philadelphia? If so it may not be the best advice to give them an eviction notice or even bring it up as if your in the city its a long drawn out process. 

If it were me id first talk with each tenant separately in person or by phone and listen. Then go from there. I wouldnt bring up evictions at all but you may want to offer breaking a lease if you feel confident in getting a new better tenant and thats the only path forward. 

I know @Jonathan Greene and his team have NJ meet ups and are also planning a Cherry Hill meet up in the next few months. 

Quote from @Rachel Nkwenti:

Hello Everyone,

My husband and I own 7 STR units in philadelphia and we are looking to scale. We are in the process of leasing a unit from a landlord but we need some help with the agreement. Does any one have a lease template or contract they don't mind sharing with me? Any advise on what terms we should add to the lease to ensure both parties are fair?

Are you up to speed with all thats been going on in the STR world in Philadelphia? Im not in the space but know there was a meeting yesterday 4/5/23 w L&I that seems to have hosts with alot of questions still with how the space will look in the next few months/years.

First thing I see is a 972sqft home is most likely not going to comp around ~1300sqft if all other aspects are similar. Thats around 30% more sqft than the property you are looking at. It may be better to find the  $/sqft and utilize that or reduce your numbers by sqft delta %  

Is your $60k rehab budget correct? If so and those other numbers are realistic for selling prices for your rehabbed home, having ~$210k in the property would be much too high. 

To me thats a bit too broad of a question. If you add some more details it may be easier for folks to give input. 

Hi Gurjot,

Im assuming OH is Ohio where that is the norm. With that said Id ask your agent if theyve worked with them and their opinion. Id also look up reviews online as the only times Ive had really poor experiences were when the buyer chose the title company. 

As for sending the money, I would verify how and where to send the money multiple times with multiple people to verify you are sending it to the correct place. 

Fwiw I usually have tenants sign and provide a check with 1st/last/security 2-3 months in advance of moving in.

Quote from @Becca Pariser:

Quote from @Eric Greenberg:

At a quick look spending $100k on a rehab whoch is a fairly heavy lift just to have the ARV $20k over your investment is much too tight. Your projected rents dont cover your monthly costs either.

You are getting a 4.5% loan? The rehab is 6 months and you are going to refi in 8months? Have you confirmed with your bank on that timeline? 

Thank you - this is exactly the type of feedback / coaching I was hoping to get here! 

To answer your questions - 

1. I put in a placeholder for 4.5% based on a lender in my area that said rates started there (calling today to confirm)

2. Do you have a sense of what might be a more reasonable timeline? I haven't walked the property yet but am hoping to do so this weekend. 

3. I agree that $100,000 feels like a lot, I just don't have a sense yet of what the construction costs would be, so went with a relatively high number. 

Could be ‘starting there’ as an ARM but is think a 30yr fixed will be closer to 6.5% or so

 I cant give you a timeframe but id get a contractor or multiple to walk through it to give you pricing and timelines, then add some percentage of time and cost onto those projected numbers for buffer. 

$100k could be high, but it could low. If you just rook a random stab at it you should have someone do a walkthrough with you. 

At a quick look spending $100k on a rehab whoch is a fairly heavy lift just to have the ARV $20k over your investment is much too tight. Your projected rents dont cover your monthly costs either.

You are getting a 4.5% loan? The rehab is 6 months and you are going to refi in 8months? Have you confirmed with your bank on that timeline? 

Congrats Chris! Would love to see some before and after shots of the interior!