All Forum Posts by: Eric Greenberg

What price range do you not have 20% for? A $100k property or a $500k property?

If you dont have $20k for example you should absorb as much knowledge via BP forums/podcast/local RE groups while at the same time making/saving extra money. In Philadelphia where most of our housing stock is fairly old, you'll want a solid amount in reserves to weather whatever happens from the maintenance side and from the tenant side (not paying rent for +6mo) as its fairly tenant friendly in the city. 

When you say tripled is that the amount of water used (ccf’s) or only the dollar amount? Also realize that Philadelphia’s water per ccf, service charges, and storm water charges have all gone up in the last year or so which is also adding to that higher cost. 

You can borrow up to $50k from your 401k but you will pay yourself back with interest. Also realize you will pay back that loan back with post-tax dollars, not pre-tax. 

If it were me I'd look at it on an hourly rate basis. With Job 2 you'll also have an extra ~25hr a week to work on your REI and do extracurriculars and the 401k match is a big plus as well. And remember to enjoy your youth as well as your investing career in your 20s.

Job 1 65-70hrs/week
$70k = $19-20/hr   :   $100k = $27-$30/hr

Job2 40-45hrs/week PLUS 401k match

$65k = $30-$34/hr   :   $70k = $43-$48/hr 

Also realize that you will most likely not get a conventional loan on a ‘distressed multifamily’ if each unit is not in a livable condition.

Could search here: https://www.facebook.com/group...

Only lesson Ive learned over the years is if a seller with the potential for a complicated title situation wants you to utilize their title company, you may want to push back and use a company you trust instead. 

I first would check the zoning on the property (https://atlas.phila.gov/). Make sure that it’s actually zoned for/has a variance for multiple units. That will also tell you if you could legally have a 3rd unit. There are a large number of multis in Philly that are illegal and therefore you could be fined & would have even less rights as a landlord, ie evection/etc. 

I would rather the last owner not be a renter unless it was the only way to finalize the deal. If this has to be part of the deal, make sure to vet them like you would any other tenant.

In my small experience with small MFH owners who previously lived in one of their units, they usually continue to live how ever they use to when they owned the building, so you may have some friction if/when you try to change things  

Again, I would hire someone to come take a look in person. Theres no reason to make assumptions or guess online with a potential structural issue. That said theres a chance when they took out the old exterior wall to do the extension they put this wall up as a load bearing wall that was 1ft away to have enough space in the kitchen. Does the 2nd floor still end at that location or was it extended as well?