All Forum Posts by: Matt N.

@Kaylor Bankler

Still consider this, because if you cant sell, you'll have to refi. Trying to protect you from surprises. I hope the rehab and sale goes well!

If units 1 and 2 are 100% passive, hands off, and easy like you say.... Consider 3months lost rent for an eviction + repair costs if they leave. How many months or even years of market rate rent would you need to log to catch back up? 

Personally I'd try to get them on 6month leases at a rate close to what they are paying. And if they want to stay month to month, raise the rents. MTM arrangements are usually more expensive than LTR.

Great example of mine: Tenant was paying $900 on a MTM lease when I purchased. The house is worth more. I offered $980 for a 1 year lease, $1020 for a 6 month, and $1100 to stay month to month (they want to move but are not showing signs of being too serious.) They went MTM for a couple months then smartened up and took the 6month lease, now they will be renewing at 1 year. Great tenants, no issues, I showed them that I would work with them. I chose people first in this scenario, money second.   

@Kaylor Bankler

$350k / $500k ARV is exactly 70%.

If the numbers are accurate you will only be able to refi out the purchase price and not your rehab costs. Use caution. Some refi's on investments only give 65% LTV, so you'd be sinking cash into it. Might make sense if its a good buy and hold rental. Wont make sense if you are trying to get 100% cash out.

I pride myself in analyzing deals, and helping investors, so reach out for help any time. 

@Cole Martin if you venture into Philadelphia just know that it is block by block and you will need someone on your team who knows the city well. Otherwise, stick to what you know! Happy to help in the city if you find yourself going in that direction. 

@Caroline Gerardo @Randy Lee

This is what I do. For myself and for other investors. Take a look at my profile and if you think we could work well together. Reach out!

I am a long time Philly resident who knows the city inside and out.... so check that box off your list. 

@Account Closed

Both sound good as long as the numbers work for you and you like where you live :)

Send me the one you don't choose! I have people looking to do the same. It's a great strategy for a first time buyer.

If the Kensington deal is close to a Market/Frankford stop, it will likely appreciate faster than Brewerytown. If it is a long walk to the train, I would consider both areas comparable in terms of appreciation and would focus more on cashflow NOW. 

Good luck!

Matt

@Justin R.

Check out my post from a little while back. https://www.biggerpockets.com/...

It's just my short story on how I got started. Without disagreeing 100% ... I want to caution you on listening to the "Just jump in" guys. You have a good plan. Some of your numbers are not perfect but that's ok. Philly is the cheapest BIG city and you can find deals in all price ranges. This might be lost on some of the commentors. Also, there is nothing wrong with BRRRRing a single family home. I find my best and most reliable tenants are in single family houses. The reason the podcasts and books all talk about multi-units is because they do not live in a place like Philadelphia where you can get into a single family with $900 PITI and rent it for $1600/month. We can here! (look up PITI).

You do need to take action, do something. @Eric Greenberg is the only other Philly guy commenting, and I agree with him. Your salary will help you through the first few deals and give you some freedom to buy better investments right away. 

If you want to reach out I would be happy to help!

Hi @Eric Lowe. We should probably be best friends. I BRRRR in state, in Philly. Check out my profile and if there is any way I can help you, feel free to reach out!

Best regards,

Matt

@David Ribardo

I've called and emailed Paul B. at the city. Nothing yet.

Specifically: Commercial building, Cash sale, Do we need to pull the CO or not? 

I specialize in Philadelphia, the buyers agent seems to be from NYC and lacks experience, he thinks this is 100% necessary... Online resources are not clear.

Thanks in advance!!

Matt 

Hi BP Lehigh Valley,

I'm working on a sale of a commercial property in Allentown, the buyer is paying all cash. I am running into conflicting information about the need for a CO to be pulled before the sale. For residential, I understand this is a requirement. Lenders also require this. However this deal is not residential, and there is no lender involved. The buyers agent is insisting it is a requirement anyway. In the AOS our buyer agreed to no inspections. 

Can any local experts in the Lehigh Valley weigh in on this? Can anyone refer me to a local expert who deals in commercial and cash deals in the LV? 

Big question: Will the city or title company stop the sale if there is no CO pulled? Our reason for NOT pulling one, is there are functioning businesses in the building, and the seller does not want to risk an issue that would cause loss of rent or un-realistic requests from the municipality that may disrupt the commercial tenants. 

Thank you in advance!

Matt