All Forum Posts by: Igor Avratiner

In that case push as much as you can. The items the inspector described are pretty serious and potentially costly items. Especially if you are not buying as is you have the right and responsibility to your business to find some kind of resolution. Fire alarm system alone is not cheap. If they can fix everything using qualified licensed electrician/plumber and keep the same sales price I would be satisfied. 

Agree with @Crystal Dundas if you are getting top dollar you may need to make some concessions. Especially if the buyer is getting an FHA loan some of these items may be required if the appraiser comes out and notices them too but I don't think an appraiser will be nearly as detail focused as this inspector.

Are you selling the property "As Is"?

I have noticed some tenants take advantage if you let them. Your best bet is to be disciplined and have a consistent approach with all tenants. In my leases rent is due on the 1st and after the 5th is considered late. If there is no payment by the 5th deliver a notice to quit on the 6th. If you follow this consistently it has been my experience that you will instill the correct behaviors in the tenant and yourself. If there is still no payment in 10 days you must be prepared to follow through and file an eviction. The worst thing you can do is make your tenant think you won't follow through. Following this process it has been my experience that things will work out more often than not. It goes without saying but make sure you are familiar with the laws where you live so you know the correct and legal process. Selecting the right tenants in the beginning is just as important.

I keep a file with the utility account numbers. Since water is leinable here in Philadelphia I keep the water bill in my name. I go online once a month and check the balance, if it's past due I send the tenant a notice. 

I would talk to a title company and maybe a lawyer. The 4% transfer tax isn't based on the tax assessed value, it's based on the purchase price. A dollar deed transfer might be the way to go. 

@Steve BabiakThanks for clarifying 

Do you need to be a DIG member to attend? 

@Fiora P.

I am also actively looking in the same areas you are. I am making about 1 offer a week but it's a competitive market and I have certain criteria I stick to so if the price/terms don't line up with my criteria I don't buy. Eventually if I keep making offers I will find an acceptable deal. But to answer your question I have not invested in the better areas so I don't have any experience there yet.

I have had more experience in the lower price areas. They are competitive in the current market as well but I have had more success there. Feel free to PM me if have questions.

Hey Fiora I am very familiar with lower bucks and northeast philly. If you and your husband don't mind differing the home repairs, investing in an income producing property is probably the way to go. In the long run you should still be able to have your cake and eat it too. 

There are probably 2 strategies you can research.

1. Buy in an area where the total cost including rehab is 50k or less. This is what I currently do. One of my criteria is that I must feel comfortable enough with the street that I can visit the property day or night. 

2. Use your 50k as a down payment in a better area. Calculate your project net cash flow after all expenses are paid set a minimum amount for what the net cash flow should be to determine what purchase price you can look at.

Both are pretty competitive right now so you'll need to research.

There are banks that also offer conventional renovation loans. The way the program works and terms offered are very similar to the FHA 203k. In some cases these conventional programs also allow for rental property with 20% down. I spoke with one bank that did rentals but they had a restriction of allowing 2 loans per borrower when the property is a rental.