All Forum Posts by: Rick C.

Hi Kohren - I have a similar interest in the Wilmington area. From the research I have done and the time I have spent there in person, the purchase / rental prices can change drastically between neighborhoods, some of which are only within a few blocks of each other. In the lower priced neighborhoods (where you will likely get the best cash flow), the violent crime appears to be concentrated on certain streets, so I have been trying to focus on the streets that do not have those reoccurring incidents.

If you do not live in New Castle County DE, you are required to have a property manger. I am not sure how strict their definition of a property manager is, but that is a law to consider nonetheless.

I do not own any properties there yet, so please take what I say with that in mind. I hope this helps though. Please let us know if you end up connecting with anyone that could give more color on Wilmington. Good luck!

Over the years, there has been a growing demand for walkable communities. At a quick glance, this has been shown in the form of people moving into more densely populated areas, such as cities and downtown areas of suburbs.

In less than a decade though, autonomous cars will be available to consumers. I am curious how BPers believe this will effect real estate trends. Will it promote suburban sprawl, since having a long commute will not be as stressful? Will it further enhance density, because it will be easier/cheaper than ever to take a cab or use a car share service instead of owning a car?

Overall, what do you think will be the effect of autonomous cars on real estate trends?

Hello – I am considering expanding my portfolio to Camden, NJ. I understand the crime is extremely high there and that most neighborhoods would be considered war zones. However, if I could find streets within that city that historically do not have high incidences of crime (by Camden standards), then I believe it may be worth the further research. Does anyone invest in or know someone who has invested in Camden, NJ? Thanks, Rick

Count me in!

Hello, I have two units being rehabbed that are coming up for rent in January. I understand that is a notoriously bad time of year to lease, so am concerned that I will have to go in at a lower rate. Are there any suggestions of what I can do to mitigate this potential issue? Ideally I would like to get both leases timed to end in the spring. Thanks, Rick

The seller is an individual. The issues were not that obvious, at least to someone like me who is not an inspector. Below are the main ones. It should also be noted that none of these issues were disclosed on the seller's disclosure, so the initial agreement on the price was based on the assumption that these did not exist:

- Asbestos insulation in the attic and covered pipes in the basement.

- Knob and tube wiring in the attic, possibly the rest of the house.

- Mold on the basement ceilings.

- Roof support beam broken in the attic.

Thanks guys. One additional question, given the extensive repairs, what evidence would be best to present to the seller? Specifically, should I give them screen shots of the parts of the inspection reports with the issues I want them to reimburse me for, copies of my contractors' estimates, etc?

Hello -

I am in the middle of an inspection period for a duplex. The inspection report came up with some significant repairs that need to be done (all categorized as safety issues and major issues). The pre-inspection purchase price was $71k, but the repairs will likely amount to about $20k. For purposes of maximizing my percent return, I am getting a conventional loan and putting 25% down.

I would prefer to get the work done by my own contractors, so I am considering asking for about $20k off the purchase price. However, after closing, I do not want to have to take $20k out of my pocket and away from other investments to do these repairs. I would ask the seller for an assist instead, but I do not believe a standard investment property mortgage would allow for that high of an assist. I also have the ability to buy in cash, but would want to roll 75% of that cash back into a loan for that property after the repairs are done (not sure what the process is for getting a mortgage post-closing).

Does anyone have advice as to how I can a) minimize the amount I put down for this property and b) ensure the repairs are getting done properly.

Thanks in advance for your advice.

Rick

Hello, I am trying to determine the feasibility of putting my existing and future properties in an LLC. All of my loans are and will be conventional, and I have no desire to go to commercial route due to higher costs, less favorable terms, etc. The banks I have spoken with will not lend conventional loans to an LLC. They also do not support or encourage me to move the properties from my personal name to an LLC after closing. Although many people do that, the banks' claim is that they do it with the risk of having the lender find out and their loan recalled. To give myself some protection, I have a $2mm umbrella insurance, in addition to the standard homeowners liability insurance on each property. Given this information, what would you do in this situation to properly protect yourself? Thanks in advance for any advice. Rick

Hello,

I am considering investing in the Wilmington, Delaware area due to a few factors:

1. Lower taxes than neighboring PA or NJ

2. Lower entry cost

3. Having #1 and #2 while still having a proximity to the major cities in the Northeast corridor (Philly, NYC, DC, etc)

Does anyone invest in or understand the market around there that could help me? Any advice would be appreciated. Thanks in advance.

Rick