All Forum Posts by: Joe Freeman

@Rich O'Neill spot on

@John Erlanger Can you clarify your question? What does paying so little mean?

Thanks

@Gaby Liu some details of the situation could be beneficial to other investors, without mentioning names if you choose. 

@Rich O'Neill Good deals in DelCo certainly have been harder to find it are definitely out there. I’ve seen many cash flowing multi units lately that beat the 1% rule by a mile. Not sure what your criteria is and how these match up but there are deals out there for sure.

@Carolina Selva there is plenty of inventory out there with cosmetic rehab and cash flowing. Over 90% of what I work with is off market so would be different than what you see on the MLS. Keep an eye out and if you need help let me know.

What are you putting into for cap rate calculation for maintenance expenses? This would be assuming you cannot get this information from the current or previous landlord. I’ve seen a lot of different numbers being talked about on BP.

@Carolina Selva What I can share with you is the Philadelphia market is hot with investors right now. Occupied properties with tenants that have been long term and current on rents has been desirable, however as Matt Ziegler mentions these have typically seen slightly below market rents. I’ve seen landlords also screen for what type of occupation prospective tenants have to assess risk. These two options allow you to go in either direction. 

@Thomas Baylor You should not have to pay for them for an estimate of rehab. Their motivation would be the potential of a big job, with possibly more to follow. To be taken seriously you could let them know that this is the first flip, but you have plans to do xx more in the next year etc - whatever your plan is. That being said a large project with a full gut could be a bit much for a first flip. I don't know the parameters of the deal you are evaluating but in general the first flip you are looking to hit a single not a home run. 

@Adam Zach I have an engineering background as well. Seems like it could be a natural transition for engineers being analytical people by nature. I work with many investors, some of whom are engineers but no one occupation stands out to me. I will have this in the back of my mind now however. 

@Kyle Wahl Private money lender or hard money is the easiest way to go and what all of my investors do outside of all cash. There are many out there and some will require good credit and experience with investment properties, others will not. Just to give you an example I know of terms with 20% down on purchase, 70% of ARV being max loan amount. So in your example of $50k purchase and $100k rehab ($150k total), your ARV would need to come in around $215k to hit the 70%. Some of these lenders also have a minimum purchase amount to ensure the deal makes sense for them as well. In any case if you are looking to flip properties I would suggest to start contacting PM or HM lenders and find which one works for you. Best of luck!