All Forum Posts by: Lana Lee

@Nicholas Zornek, I apologize, I just saw your response. The vacancy rate is different for different locations (i.e. Philadelphia is around 6-7%). There are several ways to calculate for this expense. Some will just use a month of rent for this number, and others (such as myself and Jason DiClemente) will just take out the percentage associated with the area. I hope this helps answer your question. Thanks

Thanks Lana and Gregory. the water bill is on my name but I have them pay it. I just check online and send them reminders if they didn't pay. Maybe that is a bad idea.

I have few rental units in Philadelphia. Some tenants would be late on the water bill for a couple month and receive shutoff notice and one of them is 3 month late now and I still don't see shut off notice when I check online. Anyone know what that is the case?

Hi All,

First time here - would love advice. I'm curious about the process of converting Mutli-Family to Hotel/Hospitality use in Philadelphia (and also DC if people have insight as well). What is the process? What hurdles? What regulation? Any insight would be greatly appreciated. Brief background: Mutli-Family real estate asset management firm exploring opportunities in hospitality. Thank you! 

There is still a lot of cash flowing areas if you are patient . Deals are hard to come by.

Example: Currently in germantown if you are in zip code 19144 -- get a house for 60k and fix it up add 40K. You can rent it out for 1250 all day long.  

19141 -- If you get a house for 85K and there are plenty you can pull 1100. There are a few deals even on craiglist where someone is selling a package at 100K for a house in this neighbourhood and is pulling 1300. 

So define what you mean by cash flow and see the returns. Some people look for 20 percent. Some people look for 9 percent. It all depends on what your expected return is and what you are happy with.

Granted the deals of getting a house for 45K and getting 900 are gone.

I just finished a duplex in 19140 . I am all in for 90K and i am asking 1000 a floor and i already have applicants.  So it depends. 

So just look at houses patiently the market is already correcting with people dropping prices. Like they say a C and D neighborhood looks good in a rising market and when the tides turn its interesting to see who will be left with no clothes on.

Cheers

Amit

@Lana Lee - 1 point above prime rate, so as of now 6%. Every 6 months the credit union changes the rate depending on the prime rate. Most of the credit unions I spoke with lend at prime rate or even below prime rate if you go with a lower LTV, however to get the amount of credit I wanted I decided to borrow up to 95% LTV of my primary residence

@Kristy Pedersen I agree with @Jason D. to go with a HELOC over refinancing. It is quick and likely less expensive than refinancing. I recently went to a bunch of the credit unions in Philadelphia (American Heritage, Sun Federal, PFCU, Trumark Financial, PSECU, and Franklin Mint) to see the terms of their HELOCs. I eventually went with Sun Federal because they would lend up to 95% LTV. The only cost was paying for an appraisal. If you go the HELOC route at any of these credit unions, you should be able to get the $24-$48K you are looking for.

I invest in the Philadelphia MSA, as I had lived and invested there for a long time.

Just behind SF Bay Area in GDP. Strong pharma, healthcare and education economy. Plus Xfinity...lol.

Average Caps 8-12. Good rents. Low property taxes in city.

So many deals, so little time!

Let me know if you want more info. I have a few flips that would make $100k right now. Mostly cosmetics.

And I represent other investors here.

@Lana Lee that’s why I’ve been shying away! I just feel like, say if I were dishonest and was trying to sell a property with some big flaws, I’d try to fly it under the “sorry tenants can’t be bothered, drive by’s only” excuse and hope for the best. Of course I’m sure there’s gems in some of these but I tend to stay away, just wanted to know what everyone else thought.