All Forum Posts by: Jeffrey A. Rupertus

Hello,

With the new laws in Philadelphia, more properties we manage are being required to have a lead dust wipe test prior to having the owners being able to renew their rental license. We've agreed to help the owners prepare for these tests but have not had to actually do this yet. Until now. We are looking for some guidance on how best to prepare for these tests and if anyone in Philadelphia has a cleaning service or contractor who is experienced in doing this preparation.

Most of the properties we manage are old and have old wood windows, which we've been told is usually where the test is performed. Thanks in advance for any guidance.

Joe, I think I can help. I'm messaging you about this and something else.

Yuriy,

Are you happy with the service they provide? Do you mind sharing their contact with me?  The 3 quotes I have are over $300 so $240 sounds pretty good to me.

@John Knisely @Ram V.

Right now, after setting aside estimated cap ex & maintenance, escrow, water/sewer, public lighting, etc. it will cash-flow around $600/ month.  Two of the three units currently have well-below market rents on month-to-month leases. Once I get new leases signed and tenants paying their own water, the cash flow will be $800-$900/ month. My goal is to update the electrical (this should be about $10,000 which I'll probably pay for out of my pocket) and then refi within 24 months. Based on comps and the condition of the property, $250k is a very reasonable appraisal expectation.  Upon refi, the cash-flow should jump to $1100. If the appraisal is higher, I'll take the cash out to use on another property and cashflow a little less.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $195,000
Cash invested: $1

This is a well-cared for triplex in the Germantown neighborhood of Philadelphia. It is seller mortgaged at 85% and the 15% down payment and closing costs were paid for using a private loan.

What made you interested in investing in this type of deal?

The property has been well managed and cared for and seller had 100% equity so there was an opportunity for seller financing.

How did you find this deal and how did you negotiate it?

A realtor brought it to me. As seller was open to seller financing I was willing to pay close to the asking price so there wasn't much negotiation over price. As the deal was happening the seller pulled out several times without offering any different terms. I kept adjusting the terms until the seller came back to the table. In the end, after 14 months of owning the property, the terms we settled on will become better for me than the original terms we'd agreed upon .

How did you finance this deal?

85% seller financed, 15% down payment plus closing costs were covered by a private money loan.

Lessons learned? Challenges?

When you have a seller unwilling to negotiate (says "no" but offers no more than that) ask the seller, "What has made you pull out of the deal?" and then "negotiate" with yourself on their behalf, addressing their concerns. And be patient with sellers when you're trying for seller financing. It definitely took longer than I would have preferred but that patience really paid off.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

These two have been all-stars for me since beginning this journey a couple of years ago...

Realtor: Alison Simon, Keller-Williams Philly (https://alisonsimon.kw.com/)
Attorney: Alan Nochumson, P.C. (https://www.nochumson.com/)