All Forum Posts by: Matthew Morrow
Matthew Morrow has started 53 posts and replied 433 times.
Post: Long Term Rental Analysis - Multifamily

- Investor
- Pennsylvania
- Posts 438
- Votes 161
Quote from @Matthew Posteraro:
I am in the phase of practicing deal analysis on possible investment properties in the area I am looking to invest in. The property would be a multi family that me and my wife would live in one unit and rent out the rest. Where I am looking for guidance is we plan on using a larger down payment of at least 50% to be on the conservative side of leverage. Using this to measure cash flow and a few other metrics seems to make most properties I run numbers for very good opportunities. I am afraid we will fall for a property with a false sense of a good deal.
Are there any suggestions to help me run an analysis that would better account for the larger down payment and allow me to better analyze potential properties in the future. Thanks in advance for the advice!
Hey Matt
It’s great that you’re practicing deal analysis and taking a conservative approach with a larger down payment. Living in one unit while renting out the others is a smart move. That said, I completely understand your concern about deals looking "too good to be true" when you’re putting in 50% down.
To avoid this, it’s best to analyze properties as if you were using more traditional financing (20-25% down). This gives you a more accurate view of the property's true cash flow and performance without relying on a large down payment to "force" good numbers.
This is exactly what we do — help investors like you evaluate deals to ensure responsible purchases that lead to portfolio growth. We use a custom spreadsheet and DealCheck to break down key metrics like cash-on-cash return, cap rate, and debt service coverage ratio (DSCR). Instead of focusing solely on cash flow after a large down payment, we analyze how the property performs with less cash in so you can see if it holds up. If the deal works with 20-25% down, it will only look better with 50% down.
The key is to stay disciplined. If a deal doesn’t fit your criteria, it’s an immediate pass. Stick to the numbers, period. That’s what makes you an investor, not a buyer. This approach ensures you’re making decisions based on logic, not emotion. We help our clients do exactly that — evaluate properties objectively, stick to their buy box, and make sure every deal fits their long-term goals.
If you'd like to see how we structure our analysis or want to review a few sample deals, we’re happy to share insights. Our goal is to make sure you’re buying properties that help you grow your portfolio responsibly. Let us know if you'd like to connect on this!
Post: Tenant showing services for our of State landlords

- Investor
- Pennsylvania
- Posts 438
- Votes 161
Quote from @Tessa Tsui:
Seeking advice from out of state landlords. Do any of you use any app to do tenant placement on ad-hoc basis? This is for rental properties in Pennsylvania while I live in another State. I currently use a property manager but they are very bad in tenant placements who do not answer calls or inquiries from Zillow. Over 1 month with 124 Zillow potential tenant contacts, the property manager report showed no leads from Zillow and couldn't find tenants. I ended taking over the listing and screening tenants on my own through Zillow. It took me 5 days to find qualified tenants with good credit score and income but my property manager still charges me full listing fee even though I did the whole listing, marketing and prescreening and they helped with 1 showing - they only showed one tenant who I prescreened through Zillow. I am considering other options to see if there are ways I can hire someone to just do showing only and mamage my own rent collection through Zillow app, I also have my own contactors to do maintenance but have been paying monthly fee to my property manager who has done literally nothing, they also never answered my calls.
It definitely sounds like you need to reevaluate your relationship with your property manager. This level of service is NOT typical for the Lehigh Valley, and it’s certainly not what we’ve experienced with our PM or others we know in the area.
A property manager should be proactive in tenant placement, responsive to inquiries, and transparent about efforts to fill vacancies. It’s frustrating to hear you had to step in and handle the process yourself while still being charged a full fee. But small note- dont let the Zillow clicks or likes determine perceived interest. That data is very wrong most of the time. We see it all the time with homes we have listed, and personal rentals we have posted.
If you’re considering handling tenant placement and rent collection yourself, there are tools like Zillow Rental Manager or Avail that can help streamline the process. But honestly, a good PM should handle all of this for you. It may be time to shop around for a new one who will actually add value to your investment.
If you want a recommendation for a reliable property manager in the Lehigh Valley, I’d be happy to share some contacts.
Post: Take my neighbor to civil court over dead tree?

- Investor
- Pennsylvania
- Posts 438
- Votes 161
Quote from @Jordan Sachs:
A dead tree from the property next door fell on the garage of one of my properties. I understand this is my responsibility and I filed an insurance claim and the garage is currently being rebuilt as the entire thing was destroyed. However, my contractor has informed me that a large part of the dead tree is still hanging over the garage and is likely going to fall during another storm and probably destroy the garage again. I was told I can pay $3k to remove the part of the tree that's hanging over the garage (in addition to the $3k deductible I'm already paying) or I can take the next door neighbor to civil court because the tree over the garage is actually dangerous to the tenant who lives there.
Does anyone have any idea if this would be worth going to court over and if it is and I get the judgement I want is it enforceable? The house is in Allentown, PA. Any info/input would be greatly appreciated. Thanks in advance!
We’re from Allentown, and unfortunately, this is a pretty common issue around here. Honestly, hiring a lawyer might end up costing more than the process itself, especially if things don't go in your favor.
I’d recommend approaching the neighbor directly to discuss it, making sure they’re aware of the serious safety risk. Follow up with a certified letter so there’s a record of your request. If that doesn’t get a response, you could offer to split the cost since it’s a shared liability.
If they still don’t respond, you might have to handle it yourself for peace of mind — as frustrating as that is. If you need local contacts for tree removal, we know plenty of reliable options.
Best of luck!
Post: Let's say you have $80K in your savings account...

- Investor
- Pennsylvania
- Posts 438
- Votes 161
Quote from @Jennifer Fernéz:
Let's say you are a brand new investor. You are 40 years old and you have a family. You have $80K in your savings account, and you decide you want to invest in real estate.
Knowing what you know now, what would you do with your 80K? How would you make it grow the quickest?
Greetings from Allentown!
House hacking a 2-4 unit might not sound glamorous, but it’s hands down one of the fastest ways to build a paid-off rental portfolio — even with a family. It’s especially effective in eastern PA, where competition and inventory can be tough.
If you've got $80K, I'd suggest capping your initial spend at $60-65K. That's more than enough for a down payment using an FHA loan (just 3.5-5% down) while still having reserves for expenses. You'll live rent-free in one unit while the tenants cover the mortgage.
Here’s the play: do it for 12 months, then repeat each year for 3 years. By the end, you could have 10 doors — all while living rent-free. Use the cash flow from those properties to buy your "forever home" or just keep the cycle going. Before you know it, the whole portfolio is paid off by age 65-70, and you’ve got financial freedom without relying on Social Security. Or, better yet, scale faster and retire early.
It’s not easy, but it’s simple. House hacking works. Let me know if you want to chat more about it!
Greetings from Allentown!
I know its not the most appetizing way, but id house hack a 2-4 unit. Tough with a family, but it will grow and give you the quickest way to a paid off portfolio by the time you want to "retire." Especially in eastern PA where competition and inventory can be tough.
If you have 80K, spending 60-65 max should be your limit. This is plent to make a down payment and have some reserves for the house hack, and youll live for free. Do this for 12 months- us FHA loan to take advantage of the 3.5-5% down, and then do this cycle every year for 3 years. Next thing you know- you have 10 doors and only used 3 years. Use the net cash flow from those buildings to them buy your "house" and just let the system churn. Itll be paid off by the time your 65-70 and boom, no need for social security or retirement. Or keep building and retire your self sooner.
Post: ARV Unlocked: Expert Tips from Appraisers 🏡 & PA Act 52 Wholesale Updates💡

- Investor
- Pennsylvania
- Posts 438
- Votes 161
Curious about nailing down the perfect After Repair Value (ARV) to make smarter investments? Join us on 12/10/24 from 6-8 PM for ARV Unlocked: Expert Tips from an Appraiser, an interactive seminar and networking session hosted by REI Partners!
Learn directly from two seasoned appraisers who will break down the art and science of accurately calculating ARV—whether you're flipping, following the BRRRR method, or evaluating your next deal.
This hands-on workshop will cover:
- The ARV Formula Simplified 🏠 How to approach property valuation like a pro.
- Spotting Hidden Value 🔍 Key features and upgrades appraisers consider.
- Common Pitfalls 🚩 Mistakes to avoid when estimating value in today's market.
- Your Questions, Answered 💬 Interactive Q&A with the experts.
Plus, we’ll provide a brief update on PA Act 52 / SB1173 and the new rules for wholesaling in Pennsylvania starting January.
This isn't just a workshop—it's an opportunity to network with like-minded individuals! 🤝 You’ll meet local investors, real estate agents, lenders, and others pursuing the same path to financial independence.
🔗 RSVP Required: Reserve your spot through the Meetup link and select either in-person or virtual attendance.
Note for Virtual Attendees: Participation will be limited to observation only, and technology limitations may impact the presentation quality.
Details:
- Fee: A $10 Donation / person is suggested at the door to help offset cost of production, speakers, and event center staffing. Cash / paypal/ venmo accepted
- Virtual / Zoom attendance is free, however donations are accepted. Participation will be limited
- Refreshments: Light refreshments will be provided.
- RSVP: Space is limited, so please RSVP to secure your spot.
Special Notes:
- Venue Host: Monterre Vineyards - Matt & Ashley Bubbenmoyer
- Event Host: The Morrow Wargo Group - Investment Real Estate Agents
- Event Sponsor: Mike Sup- ROI Home Inspections
Additional Information:
- Sign In will be required at the door.
- Recordings of our meetups are available on YouTube, Spotify, and Apple Podcasts after each event.
Follow Us:
- https://www.facebook.com/reipartnersgroup
- https://www.youtube.com/@reipartners3539
Post: 4 out of 5 new tenants evicted or arrested....

- Investor
- Pennsylvania
- Posts 438
- Votes 161
Quote from @Charles Carillo:
I have seen similar situations when the previous owner/seller loads the property with unqualified occupants. During the due diligence process, did the buyer walk the property, unit by unit? Usually, you can speak to some of the tenants during a walk-through. Also, did they run the current tenants through state databases looking for previous evictions? These are a couple of things we do during our lease audit process.
This is a prime example of why investors need reserve funds. If they have the funds to evict and re-rent to good tenants, they have solved the problem. Without reserves, they might be unable to evict tenants or prepare the units once they are vacant.
Great points—walking the property and speaking with tenants during due diligence is a practice we now prioritize, along with running tenant histories through eviction databases. These steps can reveal potential issues upfront.
You’re spot on about reserves; they’re critical for navigating situations like this. Having the funds to handle evictions and turn units quickly is the key to stabilizing the property and protecting the investment. This experience has been a tough reminder of why those measures are non-negotiable.
Post: 4 out of 5 new tenants evicted or arrested....

- Investor
- Pennsylvania
- Posts 438
- Votes 161
Quote from @Breeya Johnson:
Hey Matthew! that is horrible. What have you've done to tighten up your due diligence process to make sure that does not happen again? I would love to learn from this if you are willing to share. Also, can you sue the previous broker and seller for failure to disclose or at least report it to the local board?
Thanks for the support! We’ve since implemented stricter due diligence practices, like deeper tenant screening, verifying payment histories, and cross-checking financials with third-party records. As for legal action, we're exploring options for misrepresentation and considering a report to the local board if warranted. Always happy to share lessons learned!
Post: 4 out of 5 new tenants evicted or arrested....

- Investor
- Pennsylvania
- Posts 438
- Votes 161
Quote from @Sarah Brown:
Were the tenants brand new during the due diligence period? Did the seller not provide honest financials? Generally, both of these situations don't just happen overnight. Since many have been evicted or arrested, be grateful you get to get new tenants and stabilize the property. Use it as an opportunity to add value to the property.
Great perspective—turning this into an opportunity to stabilize the property and add value is key. If the seller provided dishonest financials or tenant histories, that’s something to investigate further, as it could support a claim for misrepresentation. Challenges like this can ultimately set the stage for a better-performing asset in the long run.
Post: 4 out of 5 new tenants evicted or arrested....

- Investor
- Pennsylvania
- Posts 438
- Votes 161
Quote from @Tanya Solomon:
Quote from @Henry Lazerow:
Sue the seller, any payment delinquencies should have been disclosed. Especially if seller just received a windfall from the sale it is definitely worth suing for damages. Can name their brokerage in there also to go after insurance.
OP said: It’s frustrating, especially because our due diligence came back clean, leases were solid, and the property had just been fully renovated. Unfortunately, the previous owner (who was also a licensed agent) didn’t accurately represent the tenant situation.
These statements contradict themselves. Maybe get it straight b4 paying an attorney a retainer to sue and or choose an attorney who can and will go after EVERY possible avenue to make your client legally/$ whole. IMO Most of the time, people lose lawsuits or settle for much less due to laziness and lack of rock-solid knowledge about the illicit/illegal acts the opposing side committed.
For instance, how did the due diligence "come back as clean" and the "leases were solid" if the rent was not paid up to date and paid REGULARLY? Im not an attorney or anything close to it but it seems a simple P&L statement that is broken down monthly could reveal the tenants not paying their rent on time enough to warrant eviction. If even 1 tenant was not paying on time, it would report a loss. Then a "surge" when the tenant paid up months later bc usually a tenant has to not only fall behind but MONTHS of rent have to go largely unpaid to warrant eviction.
If the P&Ls were "doctored" by the seller, that seems like pretty big cause. Also, was there a background check on the tenants possibly having criminal backgrounds and or background check to determine if the tenants had ever been evicted in the past? Seems like that would reveal the tenant(s) that have since been arrested (and presumably jailed/prison long enough to "lose" the lease/apt).
You prob will start off in arbitration and if that does not yield a good result, go to court. I hope you help your client with this bc in a way, you helped them get into this mess. Not only is it the right thing to do to help them get their legal ducks in a row about knowing SPECIFICALLY what the seller did wrong, ie did not disclose and can prove it was done for the sole purpose of deception to make the sale "smoother" but it can help you look good and have you learn how to avoid in the future (as you say "tighten up your due diligence")
It sucks when agents "help" 1st time or largely inexperienced buyers long enough to make the sale and get their commission but then peace out on the client when something like this happens.It It seems like you are attempting to do the right thing which is admirable bc at the end of the day, the court system is the closest thing to a "business police" that ppl can get.
This is why in addition to apathy that bad players get away with as much as they do as frequently as they do. It is not easy to sue. It takes time and work. In any deal/investment that goes south like this, your/buyer's side is responsible bc "buyer beware" is as old as time. It sucks to admit that there wasn't tight oversite on the deal to ferret this out b4 the sale happened and its subsequent consequences and it sucks for your client that they have made, for at least the time being, an investment that is not going to be in the black in the immediate future.
I hope you and the buyer are successful in going after the seller. As H. Lazerow said if you act promptly, the seller will have a greater likelihood of having some of the "windfall $" to pay your client when a judgment or decision in your camp's favor is rendered. Usually, acting promptly has little downside.
You bring up some great points, especially about the importance of thorough due diligence. If P&Ls were manipulated or tenant histories weren’t properly vetted, that’s a serious issue and could form the basis of a strong misrepresentation claim. Gaps in rent payments or undisclosed tenant issues should have been red flags.
It’s good to see the OP trying to help their client navigate this, as acting promptly is critical for any chance of recovery. This situation highlights why working with a solid team and prioritizing financial and tenant verification is essential. Hopefully, the client can find a resolution and use this as a learning opportunity to avoid similar issues in the future.
Post: Startup Property Management- Looking for Software Options

- Investor
- Pennsylvania
- Posts 438
- Votes 161
Quote from @Simon W.:
Quote from @Matthew Morrow:
Quote from @Simon W.:
Quote from @Matthew Morrow:
Quote from @Simon W.:
Quote from @Matthew Morrow:
Hi everyone,
We’re launching a property management company early next year (PA), but we’ve run into a bit of a roadblock with software. We’re big fans of AppFolio, but they won’t demo or consider a new account until we have 50 active doors. While we’ll be close to that number soon, we don’t want to jump the gun.
Are there any other platforms you’d recommend as a temporary solution for managing fewer doors until we hit that 50-door mark?
Thanks!
Congrats - Buildium will work but AppFolio would be a better choice. The transitions will be a pain though if you were to set everything up in Buildium and decide to switch over to AppFolio later on.
I didn't know you were in Allentown lol
If you know how to use AppFolio already, you should just wait until you hit the 50 units and go with them. Learning a whole new platform isn't fun. I am still using them both.
Disclaimer: I am not a PM, I consult and handle the books for clients that uses them.
Hey @Simon W.
Thanks for the info! We’ve quickly realized that reaching the 50-door milestone will be easy. For the first 49 doors, we’ll be running an in-house system as a beta before transitioning to AppFolio, which is clearly the best long-term solution without needing to restart the entire setup.
Lehigh Valley is definitely home—it’s where all our businesses and rentals are based, and our team/brokerage operates here too, with plans to expand statewide soon. We feel incredibly fortunate and excited for what’s ahead!
Sounds awesome. If you ever need help with consulting or reviewing the financials, I can stop by!
Sure thing. I noticed your from here and NY. What type of consultation / ops to you do?
I help PM firm scale and help streamline their procedures. I make sure the accounting side of AppFolio is headed to the right direction in terms of SOP. I also do like fraction CFO work so I can oversee/manage the controller and the accounting dept.
You don't know how many times I've seen PM companies not entering receipts correctly. Move outs can mess up the accounting big time. There is a section in AppFolio called Financial Diagnostic that a lot of people even look at. This is a big piece to make sure accounts are tied out. It isn't 100% correct but majority of it tells you what you need to fix.
I was from NYC and moved to PA like 6 years ago.
Awesome. Thank you!!