All Forum Posts by: Rich O'Neill

Hey @Orlando Watts, for the pre-qual question, in my experience, if you are financing in the LLC name you will need a Commercial Loan/Mortgage. In that world, they don't generally do a "Pre-Qualification" like they do on a personal, conventional mortgage. Still a good idea to get your ducks in a row with a lender and have them do an initial underwriting and have them be prepared to answer a call from a seller, but they likely won't write up a letter. I had a good experience with Philadelphia Federal Credit Union on a refinance, but I don't know much about their purchase loans.

Would need LOTS more information to comment on the lot feasibility. 

Wow that is disheartening. I have seen you advocate for change in the PHA a lot on here. Keep up the good work and please let me know if there is anything we can do to help! 

Great good luck! 

Wouldn't a turn-key investment property purchase have a similar effect on your credit as a BRRRR, or am I missing part of your strategy?

@Sheryl Sitman the one good thing I have heard about vouchers outside of the city is that you as the landlord can somewhat hold the voucher over the tenants head if they trash the place. If they do, there is a chance they lose their voucher if you complain enough to the housing authority. Is that the case with PHA? 

@Account Closed I actually don't love the city itself. We do a lot of work there for our PM company, but I don't prefer to invest there. I like the surrounding counties, especially Delaware County. The transfer tax I think you are referring to is the Philly transfer tax, which is way higher than the rest of the state. PA in general is 2% and that is usually split between buyer and seller. 

To get the best COC return, I would try to buy something that needs work, fix it up, refinance it and pull most of my money back out. Even if you don't pull it all out for a perfect BRRRR deal it will still maximize the COC to a level that I think should be way over 8%. If you are happy with 8%, then turn-key might be the best route for you. Even if you left $30k (a lot) in a property that is cash flowing $3,000 a year (not terribly hard to get), your COC is still 10%.

Agreed with @Sean Sloop on order, but I don't see why you couldn't do both within a year. With that kind of cash you should be in pretty good shape in terms of buying the investment. 8% coc should be pretty easily achievable in most of Philly, especially if you are willing to take on a value add deal. 

Biggest challenge is going to be putting together a team you trust, or being willing to travel to the market. This can absolutely be done and David Greene wrote an excellent book on the subject, but in practice it is really hard. 

If you land on Philly as your market, let me know and I can try my best to help point you in the right direction! 

@Mikey Grabon You can do a title search on the property before the sale. There are independent searchers that will either go to the county and pull all applicable public records. They will generate a report for you to show you what liens exist. @Minna Reid is right that most liens should be cleared in the foreclosure process but not always. I would talk to a title company about this because it does change from state to state how it works. 

I like Delaware County to the west of Philly (Not West Philly). That's where most of my portfolio is. Decent amount of multifamily stock and cash flow is pretty good. Historically it hasn't done much in terms of appreciation but in the last 2 years it has gone up considerably. As you head west in the county prices start to go up and you find less multi's, but the eastern and southern parts of the county are pretty good. 

@Mark Trani give PFCU a call. They did my cash out refi earlier this year and the terms were pretty good. Their underwriting was a bit strict but overall worked out. I needed signed letters from each tenant saying they were still working through COVID, which they were reluctant to give because they thought it would bite them at some point with rental assistance and whatnot. I think we are mostly out of the woods on that and they may have lifted that requirement, but something to consider. 

@Sean Ezeamama I would send the notice to quit if she does not pay in full on time. This should just open the conversation up and your excuse can be "oh it's just part of our process. We have to issue the notice on time". If it gets too contentious, you may want her out anyway. If the notice gets her to work with you, then it did it's job. You just need PROOF of how much she paid to clean up, then you need to decide if that is reasonable, then decide how to reimburse. 

I would argue that she had some duty to move her belongings out of the way of the repair to avoid damage. Without knowing all of the details, it sounds like this stuff was immediately below the ceiling repair and she did nothing to move it. The repair person clearly didn't do enough to avoid the damage, but either way, it should have been moved.