All Forum Posts by: Joe Steinheiser
Joe Steinheiser has started 14 posts and replied 47 times.
Post: To Section 8 or Not to Section 8
- Lansdale, PA
- Posts 49
- Votes 23
Do you know of a solid section 8 property manager? That could be the barrier, one may not exist.
Post: Sewage Leak on Curb outside Proip
- Lansdale, PA
- Posts 49
- Votes 23
Originally posted by @Bruce Woodruff:
Pipe lining is only a patch, not a real fix...regardless of what they tell you. Think about it.....
Bruce,
These methods have been around for a long time now and are not jury-rigged fixes. They are a proven, commercially viable solution that will last a very long time. I work for a utility and they save millions of dollars over full replacement and repairs. Water and sewer utilities are using these methods all the time.
Joe
Joe
Post: Sewage Leak on Curb outside Proip
- Lansdale, PA
- Posts 49
- Votes 23
Originally posted by @Steve Babiak:
Originally posted by @Joe Steinheiser:
If the pipe is cracked all the plumbers are going to want to dig it all up and replace the pipe, very expensive. Now that may be necessary but in a lot of cases you can have it slip-lined to repair it at a MUCH cheaper cost. Zoom Drain or Pipe Shark are a couple that do trenchless pipe repair. Just had one done in Lansdale for a third of the cost $5k instead of $15k
Who did that job in Lansdale? What approach was used?
Best Choice will dig for much less than that number you posted, that's why I recommended them. Some sewer line repairs aren't suited to the re-lining or pipe bursting approaches, but when you can get the job done for less it makes sense to use those alternatives.
One other thing I noticed in the photo was that there did not seem to be a "Philadelphia style" sidewalk sewer vent, and that the water seemed to possibly originate from the water shut-off box. If there is no sewer vent there, that will require digging. If the leak is from the water shut-off, that's probably also going to require digging.
Steve,
Zoom drain did the job. The other prices were that high because there were two breaks/cracks in two different spots and one was under a porch meaning no digging with a backhoe and a lot of hand excavation. Certainly slip lining or pipe bursting will not be the right fix for every situation. I guess I didn't make that clear.
Joe
Post: Sewage Leak on Curb outside Proip
- Lansdale, PA
- Posts 49
- Votes 23
If the pipe is cracked all the plumbers are going to want to dig it all up and replace the pipe, very expensive. Now that may be necessary but in a lot of cases you can have it slip-lined to repair it at a MUCH cheaper cost. Zoom Drain or Pipe Shark are a couple that do trenchless pipe repair. Just had one done in Lansdale for a third of the cost $5k instead of $15k
Post: Are My Numbers Right / Rental?
- Lansdale, PA
- Posts 49
- Votes 23
Debt service? Or did you pay cash?
Post: Norristown: The hidden gem? A discussion
- Lansdale, PA
- Posts 49
- Votes 23
Taxes are really high for what your getting. Then rents are relatively low.
Post: Should I sell it or rent it?
- Lansdale, PA
- Posts 49
- Votes 23
Originally posted by @Joe P.:
Originally posted by @Joe Steinheiser:
Originally posted by @Joe P.:
Originally posted by @Slawek Jakubowski:
Maybe you should consider taking advantage of this hot market we are in right now, and pick up another (potentially better performing) investment property when the market cools off.
Better performing? Not going to do a lot better than $700 CF per month (again, depending on overall numbers). He's better off HELOCing and finding another good performing property and BRRRRing it. If he was making $50 cash flow per month then the sale would absolutely make sense. But in this case, he has appreciation (which means he has equity bullets) and he's making money hand over fist. This is a golden goose -- why would he sell?
Closing costs, deposit and rehab I have $70K in to this property. I do think it has great cash flow, the CoC return is good too. I think I will keep it and, like you mentioned, get a HELOC instead of Refi. If I sold and took the money it will be very hard to find a better property. The market is crazy and it's hard to find a good rental deal right now.
Agreed, and this is probably the right move. Would love to know where you found a property to get 700 CF per month! Hook a fellow investor up ;)
Right place, right time, right Realtor. ;)
Post: Should I sell it or rent it?
- Lansdale, PA
- Posts 49
- Votes 23
Originally posted by @Joe P.:
Originally posted by @Slawek Jakubowski:
Maybe you should consider taking advantage of this hot market we are in right now, and pick up another (potentially better performing) investment property when the market cools off.
Better performing? Not going to do a lot better than $700 CF per month (again, depending on overall numbers). He's better off HELOCing and finding another good performing property and BRRRRing it. If he was making $50 cash flow per month then the sale would absolutely make sense. But in this case, he has appreciation (which means he has equity bullets) and he's making money hand over fist. This is a golden goose -- why would he sell?
Closing costs, deposit and rehab I have $70K in to this property. I do think it has great cash flow, the CoC return is good too. I think I will keep it and, like you mentioned, get a HELOC instead of Refi. If I sold and took the money it will be very hard to find a better property. The market is crazy and it's hard to find a good rental deal right now.
Post: Should I sell it or rent it?
- Lansdale, PA
- Posts 49
- Votes 23
Originally posted by @Joe P.:
IF your goal is buy-and-hold for cash flow, and you've properly analyzed this unit's CF potential (Income minus PITI, CAPEX, maintenance, vacancy, management, utilities, city/license costs, business expenses, HOAs, whatever...) and it does indeed cash flow $850 per month...then holy hell man, hang onto this cash register. If the cash flow is actually like $50, you might want to consider selling for a better quality CF property.
So step 1...define your goal...step 2...determine if this property helps you meet it.
My long term goal is cash flow for sure. CF should probably be reduced to $700 since I didn't account for vacancy or maintenance in those numbers. The house is essentially brand new so I don't expect much maintenance in the first year but I understand that it will be there sooner or later.
I just never expected the value to go as high as it is now so that short term profit had me thinking. I'll probably just refinance, still have good cash flow, and take some of the cash out for the next one.
Post: Should I sell it or rent it?
- Lansdale, PA
- Posts 49
- Votes 23
Alex Uman,
I won't have a problem finding a tenant so holding costs are not an issue. And my original plan and long term goal was for a rental property. But the market is crazy and I did not expect to be able to sell for that kind of profit.
Wouldn't it be income tax if I sell within the first year but capital gains tax if I hold it for a year or more?
Joe