All Forum Posts by: Lana Lee

 https://atlas.phila.gov/

Yvette Chung my understanding is:

RM-1 is multi family zoning

RSA3-5 is residential mixed use. Normally it is residential but MAY allow for multi family. I own an RSA-5 duplex that was previously zoned duplex. Thus I'm grandfathered in. When purchasing you should check to see if it's already legally zoned duplex, triplex, etc. If you purchased a SFH and wanted to make it duplex etc you would have to apply to ZBA to change its U&O etc.

I would buy stuff at garage sales knowing that at some point I'd need it. I would buy leftover ceramic tile as long as there was about 12 or more square feet. That way I could re-do the entryway between the front door and the carpet. Nice first look for prospects.

In addition to doing light repairs and replacements, water heater, toilets, plumbing, I learned how to troubleshoot air conditioning. It often turned out that the problem was the exhaust fan, the contact/relay or the thermostat, all of which I could replace. No need to call a high price technician for that.

I learned how to do roofs too. At the time I had just finished my MBA and had a pretty nice corporate gig. The first roof I did was on a place with a 7% VA loan that realtors had no luck selling because the roof leaked. I started the roof work in late afternoon because the edge work takes a lot of time. I'd work until supper and sometimes I'd work a couple hours in the morning. I did that for a couple of weeks and finished on the second weekend. Some Kilz for the ceiling and a complete interior repaint and I netted $23,500 in about one month.

My wife and friends laughed about me paying all that money for my masters degree just to be a roofer, most of whom earned about $3.50/ hour. I pointed out that if you watched them working there might be 10 of them on the job which was $35.00/ hour

manufactured spend to bump up credit card bonsues.

Travel "hacking" to reduce my costs and maybe little first class action....

Really though it's easier to save by buying smart. Example I got a rug that was customer return and to be honest the store wanted it gone. Used new customer coupon etc got it done to about 250 from like 800. Now, I'd probably of never spent 800, but other rugs were in the 500 range and I almost got one. That was a 250 dollar savings and I didnt have to do anything.

Another example is I'm getting a tree removed. First bid was 6k, dropped it down to about 5500 with "discounts". Next bid came in 3700, can knock it down to close to 3400 if I pay cash. That saved me 2100 and again, I didn't have to do anything but shop around.

Update! Closing on a HELOC soon and they gave us a great valuation, about $10k more than I was expecting. Hopeful that we will be able to get at least 2 properties out of this.

Now on to the next challenge of actually finding a deal and brushing up on landlording!

 So this is in interesting point in how I pull my data. I don't know statistically what the breakdown of off vs on market is, but I would be surprised if the "most" part was accurate. I suspect that on market sales make up well over 50% of the total multifamily sales, but I'm going to dig into that to see what I can find.

I actually pull my numbers manually (not through the pre-prepared TREND charts/data) from Settled properties on an annual basis. I don't think this will catch off market sales because they are not Settled through the MLS system. Off market sales will eventually show a "recorded date" and public records will be updated in time but its not particularly fast. I closed a FSBO in January and one in February and both still do not show the new owners info in the TREND records.

More to come as I investigate this!

At what point in the application process do you ask an applicant to submit a background and/or credit check? Is it in conjunction with the rental application? Or is it after you've reviewed the application, checked references, etc? Thanks in advance.

We got rid of cable TV.  Now I am addicted to BP.

Here are the nuts and bolts of it..... Scheduled to close in <2 weeks.

Duplex in the Germantown neighborhood on Philadelphia.

Purchase price 160k

Just appraised for 215k.

Needs about 40-45k in rehab work total. Mostly cosmetics and exterior work.

My estimated ARV is 250-260. I think that is conservative but comps are hard to come by.

Apt 1 should rent for 800-900.

Apt 2 should get 1200.

My partner is covering the acquisition costs using a conventional loan (25% down) in my name. Just under 50k.

I am covering the renovation costs.

I am responsible for managing the rehab, placing tenants, and ongoing property management.

The plan is to split the monthly cash flow once the property is stabilized and hold it for 1-3 years. Then sell after the 1 year mark to avoid the ordinary income tax rate. The backup exit plan would be to hold for a longer term.

For those of you in other markets these numbers won't look great. But for a good neighborhood in Philadelphia it is pretty hard to find a property that meets the 1% rule these days... So I'm pumped!

Aren't most multi family properties not bought/sold through the MLS?