All Forum Posts by: Robert Niessen

Shawn Ackerman , yes I plan to self manage in order to get my "free" education in landlording and property management. Heaters and hot water heaters have all been replaced within the past five years as well as half of the roof. Otherwise, the property looks to be in decent shape. Plan to have a professional inspection done as part of the sale process. Also, since one of the units is vacant I plan to replace the floors and do some other updates so I feel like 6% for maintenance/capex is reasonable. Do you disagree?

@Katie Heer, it's in Quakerton.

Assumed a 20 year am loan because we want to purchase through an LLC and assume we'll be looking at commercial loans.

Hi BP, My wife and I are looking to take the plunge into the world of buy and hold real estate investing. Below are the particulars on the property that we currently have in mind. It is a duplex in a decent suburb outside of Philadelphia, Pa. We are planning to own the property through an LLC to be set up at time of purchase. As for financing, we’re using a HELOC on our home for the 20% down payment and I’ve assumed a 20 year loan at 3.5%. Am I in the ballpark? Asking price is $197,900, I’ve assumed that we could buy it for $192,000 based on our agent’s conversation with the listing agent. I figure we’ll put in another $2,000-$3,600 in improvements. Rents: $2,350 per month Top Unit: rented through August 2017 at $1,250 per month (prepaid = no worry about collecting) Bottom Unit: assume it can be rented for $1,100 per month based on Trulia comps with a 2-car garage included and washer/dryer Monthly Expenses: $650 per month $80 Water & Sewer $60 Trash $71 Insurance $200 Taxes $98 Allowance for vacancy $141 Allowance for maintenance Electricity and heat are separate and covered by tenants. Monthly Mortgage Payment: $891 per month Assumes 20 year mortgage at 3.5% with 20% down payment With both units rented, I figure we’ll get just over $800 per month in free cash flow after setting aside money for vacancy and maintenance. It feels like a screaming deal, but am I missing anything? Other considerations on a first purchase? Thanks in advance for the collective BP wisdom! Rob

Hi BP, Can anyone recommend an insurance agent in suburbs of Philadelphia for rental property? Looking at my first property, a duplex. Tried my agent for home owners but he came back with $1,750, which even he said was too high. Thinking I should be able to get something in the $800-$1,000 range depending on deductible. Thanks in advance! Rob

Hi BP, My wife and I are looking at making our first purchase. It's a duplex in Quakertown, Pa. One of the tenants has prepaid rent through August 2017. How is prepaid treated in a sale? Does the unearned portion transfer to the seller as part of the sale? Is it treated as a discount on the purchase price? Thanks in advance for the collective BP wisdom! Rob

Robert Kershaw, welcome to BP! I too am looking for my first investment property in central bucks or Montgomery counties. I am looking for a multi-family. Would be happy to meet.

I'm a newbie investor living near Doylestown. My strategy of choice is buy and SFH and small multis. For my first one out, I want to stay nearby. Looking into areas like Ambler, Abington, Jenkintown, Souderton

@Justin K. thank you so much for the detailed response.  Lots of good food for thought.

@Jerry Woods, great recommendation on finestexpert.com!