All Forum Posts by: Joe Boggin

@william t. My first rental was closed a month ago. It was a turnkey property with a tenant occupied. Rent is 700. Taxes and insurance and water cost 140/month. Net 550 month. That's pretty good cash flow. Zero repairs as of yet and if something comes up over the next 12 months then I will adjust my ROi accordingly. The property was inspected and there is a new roof, new electric panel, and new sewer line installed a year ago. my present cash flow is useless for qualifying income because the money won't hit tax returns. I can use my salary from my 9-5 to take on the little borrowing power i stil have left but everybody I talk to only will do a 15 yr term for investment property. If I'm not paying cash I want a 30 yr note.

I have been reading for some time and i pulled the trigger on a property. i would love to buy another rental or two or ten over the next couple years but i dont know how to move forward/how to fund my plan.

my primary residence is in NJ. my modest salary combined with 6500/year in property taxes and my conventional note eats up a bulk of my DTI. my front end comes in at around 39%. i have a great fico, 10k liquid, another 10k in available credit via credit cards...

i own a rental property free and clear. it should appraise for over 40k. i booked my first tenant last month paying 700/month which after taxes and insurance and water bill i net 500. (philadelphia taxes are about 500 a year) zero repairs needed thus far.

if i save over the next year i can buy a turnkey rental for 25k, cash, that will rent for about 650...after taxes and insurance and water bill i should clear 450. assuming i wouldnt need any major repairs that should equate a 21% ROI.

but i dont want to wait! so how should i move forward??

is there any lender where i can put down 20% and borrow a 30yr note for a second/investment property that do NOT have a minimum?? i would love to put down 6k and borrow 24k. my monthly payment for something like that would be low enough that i would be able to gain more qualifying income after my expenses.

that would allow me to i spoke to a credit union in phila and the longest note they will do is 15yr for a second home but my rate is over 6%. i would be able to cover the debt service but there wouldnt be much profit in that!

i see people using a LOC to buy a property and once they have a tenant then refi/cash out...rince and repeat. i can get a LOC on my rental that i own free and clear but will my DTI be able to refi the property so quick? if my salary from my 9-5 wouldnt make the cut i can use the rental income only if i had 2 years of seasoning period on my tax returns??

if you have anything in tobyhanna/ gouldsboro keep me posted. im looking to buy and hold...

@Brian K. our prices are extremely competitive. we are not registered to accept state funds for burials. (equate it to Access cards at food stores...you need to be registered). however, we try to convey at the arrangements in a professional manner that the funds need to be satisfied before the service. its unfortunate that money governs your options in life and its no different in funeral service. there are many options families have and their choices should reflect their resources. if there was an agency in the city that families can count on for financial assistance...that would make my job alot easier....that being said we do not offer pro-bono work. if a family has absolutely zero funds whatsoever the remains are kept at the Medical Examiners office in the city and the are cremated at a later date...usually after 4 months.

yes we renew our license every year!

if you go into real estate knowing your goals then i think that deal is fair. im like yourself...that is i would rather buy and hold/rent for the passive long term income over a fix and flip. maybe in two years you can increase rent, this increasing your ROI and maybe the some equity would be gained... congrats!

i wouldnt go there on a saturday at 8pm but i would collect cash from my tenant. i am familiar with the neighborhood. i know its a rough area.

btw, germantown and point breeze wouldnt come to mind as off the hottest area.

i think you should consider frankford, lower kensington, fishtown, port richmond. those areas are closer to the river (casinos), closer to 95...northern liberties is a trend thats on its downside considering the amount of money pouring into the area over the past decade is just criminal....kinda tough to get in there for a profit.

if you are stuck on a multi-family in north philly...look around temple. they are buying everything in the area and you will never have a shortage of college kids with parents money!

what are you looking to return? what numbers appeal to you? are you looking to flip or are you looking to buy and hold/rent? commercial or residential? i just closed on my first rental last month and a tenant is in right now. returns are fantastic. im in philly (hunting park 19140). alot of people speculate as to the next neighborhood to blow and its a tough call.

im also considering a shell. spoke to a guy yesterday and he wants to sell me a shell in 19133. he would take 10k. might need max 15k before its rented. homes rent for 550-650 in area. you could also sell for 40k conservatively (property down the street for this specific shell is listed for 54k)

philly is a great rental area. properties are cheap. homes are tiny. problems are an small compared to other areas. you can get a property rented immediately. im not an agent. just a working guy who is starting to dabble in real estate. i can help. i can source your properties.

i have asked those questions. but the answer stems back to the earnings. i actually love to work. the more i work the more options i can provide for my family. the rental seems long term security but the business can take off and expand. both can gain equity and both can be sold at a later date. i sometimes talk myself out of choices based on hypothetical obstacles.....im not sure if other members do the same

im considering buying another rental or trying to start a business. here are the specs...

turnkey rental in the inner city list for 23k but will take 20k. the tenant of three years pays 625/month rent. property needs some cosmetics but the mechanicals are in fair shape. after taxes and insurance i would clear 500 a month with a ROI of 27%. (even if ROI is a abused term, allow it to exist for this post)

http://www.zillow.com/homedetails/934-E-Schiller-St-Philadelphia-PA-19134/10334768_zpid/

or i can invest a little over 12k in a transport service in an industry that im extremely familiar with. my family owns a funeral home and this line of work allows for several revenue streams. one revenue stream allows us to provide service for other funeral directors as a transport provider. if a mortuary from outside the area has a case in my city, they normally hire a local director (us) to remove,prep and transfer the remains to them for a fee. there is really no cap on earnings.

the rental is secure money that comes in every month without much attention. the business can warrant higher returns, lower start up but will call upon you whenever the need arises.

how would you approach this? what kind of questions would you ask?