All Forum Posts by: Matt N.

@Steve Babiak ... I've seen Mr. Oh's bill. This would not fit. I actually have a copy of the lease but it is not signed... do you think this holds any weight? I'm working with the seller to get me a signed copy but I am not counting on that. The cert of rental suitability simply looks for open L&I violations. If nothing is on record, it goes through with the click of a mouse. 

@Paulette Midgette ... I'll have to look into this. Maybe I do have a relationship. Yep I know they are there, and so did the seller. I got a good deal so I'm going to ride this out and hope it doesn't cost me more than a few grand :( 

@Lana Lee ... the deed isn't recorded yet so the app is pending. 

@Amy Beth... I tend to agree. My naivety wants to at least try and do without all that. I will follow your recommendation after and follow up! 

@Chris K.... I've read about this. It IS a true squat (I think, maybe you could weigh in). I just closed, they have no idea the house was sold. I have not made contact. I was thinking it would make sense to make contact, establish the relationship by getting them to sign a new lease, and then proceeding from there. See if they pay, like I said, I'm happy to take fair rent. Do you think it would be wiser to do or not  to do that? I've also heard about the legislation. I won't hold my breath on the city to do anything!

Thanks everyone for the feedback. I'll keep updating to hopefully provide a good story or some good lessons.

-Matt 

Hi everyone,

I'm posting looking for advice, and to hopefully help educate future home-buyers!

So I just closed on a great deal in Philadelphia. A triplex in a hot area at a HUGE discount due to the fact that there is a squatter in the house. I'm told by the seller that the occupant has been there since 2012 and has avoided eviction a number of times. I believe they avoided eviction because the previous owner did not have all his ducks in a row. For example, taxes were owed, improper documentation, etc. This is not a malicious eviction, the people did not pay rent since 2012! I'd happily accept fair rent. 

So I'm going to attempt Cash for Keys with a mobile notary service present. If this does not work out, I am going to try and get the squatters to sign a lease so that I can proceed with the legal eviction process. Since I am dealing with seasoned squatters, I want to make sure I get this right the first time. 

My question is, What exactly do I need to do to prepare for the eviction process? I've applied for the Rental Licence, and once I have that I will get my Cert of Rental Suitability. I'm up to date on all bills as of the settlement date. Anything else I am missing? Any and all feedback welcome!

Thanks in advance!

Matt 

@Nicole Clemens Please update! I'm not ready for this story to end! Thanks!

@Richard Moreno. 

Hi,

I'm considering doing the same thing. How did this work out for you? I'm budgeting in "cash for keys" on this deal. Is this what you had to do? 

Thanks! - Matt

Wow! Just noticed all this feedback! Thanks everyone for the insight! 

I closed on a house 3 blocks south of the station (probably not as good as north of the station). I think I got a very good deal, even before reading all this. Who wants to come follow me? I did my block circling, and walking around talking to neighbors. Everyone seems very friendly and there is a school with street monitors hanging out, looking out for the kids. The blocks to the south are pretty well put together, not too many missing teeth or burnouts. 

I like the proximity to Route 1 and the train station. I've been noticing the foot traffic is very eclectic, probably due to all the different regional rail lines converging here. I'm excited to get this project underway and to look for another. 

Happy Hunting!

-Matt

Hi Everyone,

What are your thoughts on the Wayne Junction area of Philadelphia? This is where Germantown meets Nice Town. I see the city/community is trying to revitalize this hub. Transportation is always a good thing for rentals, and values are low over there right now. I see a recent surge in articles about this project as well. The word "Brewery" just smells like money to me! Just need some hipsters to move in next. 

https://philly.curbed.com/maps/wayne-junction-deve...

http://hiddencityphila.org/2017/09/wayne-junction-...

Does anyone have any insights about this? Is this some pie-in-the-sky city hopeful project? 

Thanks!

-Matt

@Ryan Cameron

I've paid cash for both. Do you have a strategy/system for screening tenants you can share?

Thanks!

-Matt

Wow, 18 pages! I started on page 18, was enthralled, and read backwards, 17, 16, 15... from top to bottom. 

I think my brain retained everything?!?

I'm happy to see so much excitement in this market. Surprised only two Philadelphian posters, well, outskirts, but close. There are so many under 30's on the market here. I've got two, in a year and a half of investing. They are night and day. The cashflow is insane, and I've learned a few lessons. 

#1 - Purchased for 28K, put 7K in, house is in the path of development. Took plenty of time screening and interviewing tenants, I get my $750 early every month. It is a dream.   

#2 - Purchased for 16.5 K, put 8K in, same neighborhood. House came with tenants. BIG MISTAKE. The people were very nice, had a job and disability payments... and a disabled son. I couldn't morally kick them out. I worked out a deal with them; $750/month + a to do list of repairs I would perform. First month was right on time. I got to work. 2nd month was not. After a few sob stories, and my unwillingness to continue work without collecting rent, they are leaving.

Future #3 - I will be sure to screen and choose my own tenant. At cap rates over 25%, it's hard to resist these deals. The hardest part seems to be finding good tenants, who also care about the neighborhood. 

In old dense cities like Philadelphia, be sure to make friends with the neighbors, show your face, be vocal about your intentions of creating a nice place for nice people to live. I have word of mouth deals jumping out all over the area. Just waiting for the right one!

Fat wallets and happy hunting.

-Matt 

@Chris Mason,

Please forgive my naivety. I jumped into this headfirst, learning as I go here, but def not a dummy.

So I bought a house cash, and opened a HELOC in order to have liquidity... incase of repairs or if another deal pops up.

1.) This is considered an "Agency cash out refinance"? 

2.) And I can only do this 6 times? ... 

3.) OR I can only do this move until I accrue 6 rental properties total, regardless of how i finance them?

What would not be considered a cashout refinance? I do not yet have my forever home, and I don't want to be shot down for a mortgage in the future because I have a bunch of rentals and I took out HELOCs. I assume a Mortgage for a owner occupant is not considered "cash out" but is still considered in the "financed properties" count?

Thanks!

-Matt