All Forum Posts by: David Spurlock

Hey @Beck DeYoung,

I am unfamiliar with the Philadelphia market, but it sounds difficult to get into. This property you are looking at is either a bad deal or is standard. If it's standard and cash is the issue, I would recommend partnering with someone who is already investing in Philadelphia. You can bring them value by having such a low down payment and doing the property management yourself. 

@Dave Kush

It seems there is a lot of opinions on this. Below is your state's statutes regarding smoking. Give it a read (Or put it through ChatGPT and have it summarize it) and let me know if it helped!

(410 ILCS 82/) Smoke Free Illinois Act. https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2893&a...

Here is one that has been noted by tenants the most @Willis Yoder. Still relatively simple

Hey @Cheryl Spangler,

What problem did you run into with the mini-splits? Also, what did you end up selling it for?

Relating to renting, when renters compliment a unit they almost always mention the kitchen. A beautiful spacious kitchen can make or break a rental. You can keep it simple and just do a modern kitchen, but I've found if you can add one thing that makes the kitchen "Pop" it will rent much better. Example: A backsplash that is a different color from rest of the kitchen (a warm green or red against white and grey walls), a tile that has a unique look or pattern to it, crown molding on cabinets, or a unique light fixture.

@Alecia Loveless This would be considered an addition to the lease which would still need to be mutually agreed upon. 

@Dave Kush You could always market the property to indoor smokers Lol

 Hey Omri,

It's great that you have been doing wholesaling to get into real estate!  

If you take the route of fix-n-flip, you'll accumulate capital but not properties. The BRRRR strategy sounds like what you are going after. Building capital through forced appreciation while still holding the property.

My advise to you is to not using your full 80k to do a renovation but instead start off smaller (30k-40k). The primary benefit of a smaller renovation is you'll have a larger safety net if the renovation gets out of hand, the property won't sell, or if it takes longer than expected to rent. I would read into BRRRR strategy and see if that fits your goals.

Hey Dave,

Unfortunately, you cannot change the terms a lease mid-way through. You would need to sign a new mutually agreed upon contract/addendum with them. How long do they have left on their lease?  

Hey Adrian,

That sounds like an awful situation. Did you have the opportunity to review the leases before closing? Was your offer contingent on review of the leases? If you could provide more information about the contract it may open up more ideas.

I would agree with @Zane Cress that a tenant buy-out would be a good option, although if you are dealing with 5-6 properties (And how ever many units per property) you're looking at an extremely high cost. You may need to just focus on getting the other properties stabilized to cover the loss from these. If you are renovating the units, you could offer the long term tenants a nicer unit at a discount of what you intend to rent them for. It will offset your loss. 

Just a couple of ideas if the worst case ends up happening. 
 

I'm a bit late to the discussion, but I'm dying to hear how this ends. Any update on this @Amber Spence?