All Forum Posts by: Mike Sands

@Jeremy Fisher thank you!! I’ll keep digging !

@Jeremy Fisher hey! Thank you for the feedback!! And yes I agree it does seem a little out of reach, as far as funding the rehab, what other suggestions would you have?

Hey all! So I just signed contract for my very first investment property in the north philadelphia area near and around the temple university area. I bought it extremely cheap for cash but it’s a 3 bed 1 bath shell and needs a complete rehab. I want to use the buy and hold strategy. I’d like to do what work I can on my own and contract the rest to what I cannot do. I’d just like some advice this being my first move after reading and learning for a few years it’s a very big leap for me. I paid $6400 for the house, rents in the area are typically $1200-1500 a month, House is a complete shell and has some Structural damage from a tree falling on it towards the back. I want to use my 18 month interest free credit cards to pay for the rehab and cash out refi to pay those off after the job is complete, place either a college student(s) in the home or rent to section 8 tenants once everything is complete. Does it sound like my plan is realistic and Feasible? What strategies would you use and or what would you do different? Any advice or Constructive Criticism will be taken into account and thank you all so much in advance!

Originally posted by @Alex Bekeza:

@Mike Sands You can absolutely do a cash out refinance and use the proceeds to renovate the property.   

The home is in shambles, I purchased it for $9,000 but right next door there are rehabs down the entire block, I can still do a cash out refinance and use that money to do a complete rehab?

hey! So I am very new to this and this question may be silly, but aside from anything conventional, could I get private or hard money just for a rehab on a property I already own free and clear? What would be the  necessary steps to do so? 

Originally posted by @Lior Reich:

Hi Mike Sands and welcome to our community
Feel free to connect with me , i can defiantly help you start your journey in Philadelphia.

Thank you ! 

Hey @Lior Reich i sent you a message request I hope to hear back from you soon!

Hello to all who take the time to read! I’m making this post because I’m very eager to start and finish my first fix and flip deal! I have some liquid capital, not much $14,000 to be exact, I know as a new investor acquiring hard money would cost me some skin depending on the deal. I’ve done extensive research on the process but to gain the experience would be learning on a different level. So I would like to take the money I have managed to save and partner with an investor with experience and gain some experience more than anything. Ideally I would like to invest in the area I live, the city of Philadelphia Or anywhere in the Tri-State area (PA,NJ,DE). Any advice would be most appreciative!

So this would be my first deal ever! I found a home in the central MD area seller is offering to finance the deal. Home is worth roughly $70,000 on the market he will finance for $3500 down and $450 a month for 30 years with a 7.25% interest rate. The home currently has a tenant and they want to stay he’s warned then of the possible sale and that within a few months I can increase rent to $800-$850.Taxes are $1604 a year and insurance rings in at $650 annually. Tenants pay for everything except trash and sewer which is about $85 every 3 or 4 months he tells me. Home is in good condition just minor cosmetics if I choose to touch up on he says. I go view the home Saturday, my question to you is this a good deal? Should I be jumping on this as my first ever? the numbers make sense but maybe I am looking at it wrong I really would like an experienced eye to view this deal and give me advice on how I should structure it and if it’s worth a go or not, I really thank you for taking the time to view my post and read it! Your help with be greatly appreciated! Thank you!

Thank you to all who read this in advance! Now my question follows..

I’ve done an extensive amount of research on how it works and I’ve got a great understanding of the basics I’m a new investor and I’m extremely eager to get my first deal underway. I live in the Philadelphia area and I found one of the ugliest houses on the nicest block! Area is full of rehabs and is going through a great deal of gentrification! Here is the deal as follows..

4bd 2.5 bath 2,800 sqft in the heart of the city of Philadelphia

$105,000 asking.

$389,000 ARV

$75,000 in repairs

Comps in the area are going for $579,000 and right next door sold for $420,000.

If my HML lends me at 65% ARV that's $252,850 I only need $180,000 to purchase and renovate to bring the value to. It's always a good idea to add a little "I.C.E" funds to your repair cost Incase anything goes unplanned. So i would want to throw in another $10,000 just to be on the safe side of things. That brings my total to $190,000 Which is very far below $252,000. My exit strategy is to fix and flip this is a very sought after hot area in the city of Philly, would a HML be willing to grant me this deal with none of my own money? That is literally the only thing worrying me, I don't have the credit or funds to cover a 10–15% cost up front (skin in the game)I do know most HML will want points and other small various upfront cost I can come up with that.. but I would love to get a 100% financed deal under my belt, again this would be my first. With how I structured this deal is it possible to get 100% financed? Any advice or tips would be appreciated! Thank you all very much!!