All Forum Posts by: Nick Loukas

@Rich Vogel hey actually just got a great deal on a sfr on mechanic street but more East right by the casino. Neighborhood seems friendly enough and the property came with a huge garage which I separated and now getting 90/month on 2 garages and almost done on the cosmetic rehab that I’m planning on listing for 1350/month including the other 2 car garage fenced in backyard 3 BR one and half bath for 97k. After all said and done I may be cash flowing 1150/month gross but realistically 650-750 net after expenses cap ex, vacancies etc.....I live in north Bethlehem township and this is my first deal!! Mortgage insurance and taxes costs me only 600/month. Put 25% down and rehab was around 3k just to throw some numbers out there. I’ll update you on the final numbers after I get it rented!!

@Chris Mason haha I'm actually interested in what you said about buying down your rate with purchasing points. My lender charges 600-800 per point. My question is if I'm strictly buy and hold with no BRRRR or refinancing forecasted do I buy the points or keep the money in my pocket at the closing table ?

@Mike S. Seems a bit high. My credit is mid 700’s have student loan 100k debt and mortgage on primary of 175k and was getting rates of 4.25-4.6 a month ago with 25k down but buying 2 points at 800/point. Hope this helps. I live in PA.

@Kristin Seitz check out avail.com. Offers online auto payments lease forms and background and credit checks. Comprehensive all in one!

@Bharath Veeramachaneni. Thanks a lot for the advice and encouragement. Loosing out on these potential deals has taught me some things and reinforced the fact that I’m actually making offers on good deals bc they are so competitive so there is some positives to take out of all this. I want to be patient but also am so excited to get into the game and stop watching from the sidelines!! Thanks again. I’ll keep pushing forward !

Hey BP !! I’ve been aggressively searching for my first deal and have made several offers on potentially good cash flowing homes (both multi family and sfr) in the Lehigh valley area of eastern PA. This market tends to be quite hot right now and I have a good agent that has been sending me some good homes. I was outbid on a few offers and recently was under contract and looked like I was about to close on my very first sfr home In Easton. We agreed on a purchase price of 72,500 and my appraisal came back near 100k so was very happy with that Instant equity. Long story short, I was on vacation and had everything set up with my financing before I left (or so I thought ) and I come to find out my broker admittedly dropped the ball on getting some documents to the underwriter so my agent reached out to the seller and anticipated we may need a few extra days to close( days not weeks). He flipped out and immediately sent out a termination contract prematurely. I later Find out that the city hit him with a couple grand of inspection for the CO that was unexpected which I believe really set him off and the delayed closing tipped him off the edge. Apparently there is a loophole in the contract that allows him to back out if I don’t have documented financing in place 7 days prior to close so being on vacation really screwed me but from a legal standpoint he still didn’t have much ground to stand on. However after discussing with my realtor I could potentially get a lawyer involved for breach of contract but I decided to sign the termination in the end because the whole situation was a huge headache and he was being completely unreasonable and I wanted to walk away with my dignity and after all this I honestly didn’t want to do business with this knucklehead. I lost 600 for the appraisal and a hard lesson. My main hurdle I’ve noticed now is that every offer I submit( many at full asking price) are still not good enough to get my first deal! What am I doing wrong? Seems that I’m being beat by either cash buyers or investors that are waiving almost all contingencies including inspections! I just made an offer for a 5br rehabbed sfr for full asking and my agent asked if I’d be willing to waive inspection and put down 10k earnest money to beat out the other 4 “very strong” offers on this house. I said no because I’m not a contractor and I don’t feel comfortable buying my first deal without an inspection. What else can I do to compete in this market? Would anyone recommend to waive these contingencies to secure the best offer ? I have about 50k in savings but I’d feel comfortable max out of pocket at 30k to allow for emergencies and to save for my next deal. BP please help !! Would love some feedback. Thanks !

@Cindy Skinner congrats !! I’m actually in the same boat closing on my first investment property in June. I’ve researched many property management tools and Avail.com seems like the one I will be using. Very similar to cozy as it allows online background and credit checks with the feature to collect rent through the site but avail also offers a customizable state specific lease with the ability to digitally sign! Check it out !

@Kat Rathell ok great. Thanks so much for all of this information I bought my own residence over a year ago and I think you explained this with more clarity than my realtor and the title company I used combined lol. I really appreciate it and will definitely ask about gap coverage when I speak to the title company!

@Kat Rathell thanks so much for the response. Can you elaborate on the title insurance gap coverage please.

@Christian Beyer thanks man I appreciate the comment. I will def do a follow up to this deal if I follow through and let everyone know how it turns out. Do we both need an attorney or is this something that the seller and buyer split the cost of?