All Forum Posts by: Lana Lee

Just wondering did you bother to find out if that's a legal duplex? It might not matter now as you live in one unit (I assume) but down the line when you rent both units and need to get 2 rental suitabilities it might be a problem if zoning is not suitable for multifamily. I'm just mentioning this because we went through the mistake of not checking zoning and now have to go through the hustle of obtaining variance.

Thank you, Paulett! You are always helpful with your advice and knowledge here on BP. Please continue to share with us! 

Maybe nobody told you yet, but Philadelphia is a seller's market right now, especially for multifamily. I am monitoring closely the sales of duplexes especially around NE Philadelphia. I only see them selling for more then original listing price. It's been crazy lately. Not only our full listing price offers are not being accepted but getting beaten by as much as k25 all cash. 

 How do you turn C property into a B? It's all about location. Tenants who can afford B will never rent in a C no meter how good of a renovation you would do. 

Phila multifamily market Is getting crazier by the day. For example the similar duplex that we bought in 2017 for K230, which was already high, is now K270- K280

On top of that the competition is insein. Cash buyers and FHA houshakers simply beat all other offers.

Some banks and credit unions will offer a HELOC on rental property maybe with slightly higher interest rate and lower line. Ask everyone and I am positive you'll find one. You can even ask investors here on BP to recommend you lender who will be willing to give HELOC on rentals. I personally have a HELOC on my primary residence, but I read here investors do it with rentals all the time .

and home equity loan are two different things. Your HELOC payments start only when you take money out.

Payments for home equity loan start immediately after setting the loan. 

So if you already have a deal you can go the loan way. If you like me and searching for a good deal you can open HELOC and don't worry about payments until you find a deal and then take money out for downpayment or to buy for cash depending on the cost of your deal.

Hey Susan! I got interested in your question and asked my lander.

Here is his reply

"Usually, sellers will do a home equity line of credit on the house they are selling and use that towards the down payment and closing costs. It would get paid off at closing."

Thank you for taking the time to answer my questions. I think that was very brave of you. I don't have the guts to go after this kind of deals. And it was very smart of you to look for the exit strategy before making an offer. Are you going to renovate basement and make it like an office for rent? You are buying for cash I assume. Are you using a BRRR strategy to get the cash or are you just saving money or maybe using hard money? What other zip codes are you buying and why? Are you self managing? Too many questions? Just trying to sick up other people's knowledge:-)

Smart move! How did you find that deal and what is the zip code? I am a beginner, trying to get any knowledge I can from experienced investors. 

Hi, there! Been following your post from the very beginning. Glad everything worked out well. Just wondering how have you been able to close on that deal with all that money that was owed by previous seller. Did you take care of taxes and fines and everything else for him or was it taken out of the sale proceeds ?