All Forum Posts by: Tim Haenn

Hi all, do any investors in the Chester county or Delaware county PA areas have a good attorney that they suggest? Would like to schedule some time with one to discuss an issue I’m having. Thanks!

I strongly recommend Stessa as it's free, links up to your bank accounts (much like Mint) and allows transactions to be classified. It uses those transactions to produce 4 different financial statements.

Hey all, for investors located in PA in and around Philadelphia, has anyone used either Slatehouse or Rentwell as property managers? They were both recommended and after speaking with each on the phone, both presented themselves very well....so much so that I’m torn who to go with. Actual investor experience would be super helpful....thanks!!

@Justin Seng thanks for the input man! I totall get that becsuse we’ve had the same reservations. Because of taxes, we had trouble trying to make the BRRRR method work in DELCO but it would’ve been preferable. If you wouldn’t mind sharing more detail on it I would love to hear it as it would serve as a great example for my wife and I. We looked at one property in particular and to make it work we would’ve needed to come in 60-70K under asking and it was only like for 120K haha.

@Joseph ODonovan while we’re on the topic, do you reccomend any property managers?

@Joseph ODonovan thanks Joe! Closing costs is mid labeled to the general community as its inclusive of inspections and other non close related items. I just keep it that way in my numbers for simplicity. Lol at the zoning officer comment. I appreciate the sanity check from someone who knows the area well!

@Aaron Klatt thanks! Will definitely look into that!

@Eric, evidently the figures I provided weren't enough for others to come to that conclusion

Dennis, not trying to act smarter than I am just asking a question out of curiosity. Why would the taxes matter so much if the cash flow is ok? Perhaps you don't agree with the cash flow figures, if so that would make more sense. Are you thinking long term with taxes? I have thought about the fact that paying down the mortgage entirely would only allow us to add 435 in cash flow to the property but thats years away...

Thanks all! Trying to answer these questions in the way they came in. I appreciate the time and feedback as we have the property under contract (about 1.5 weeks now) and we're trying to make the final call on whether or not to proceed. 

1. The area is outside of Philadelphia in Delaware County suburbs, which explains the higher taxes. I'd guess that it's a B to B- area but as I'm new to this, I can't base that upon experience. Per neighborhood scout, the area has appreciated 40% since 2000.

2. Per neighborhood scout, crime is at 35 where 100 is safest. Individuals below poverty = 16%and median household income = 45K. I've spoken with the local zoning officer and as a result of new elected officials, he told me that they are expecting the area to appreciate but I know that won't be guaranteed. 

3. Repairs per our home inspection are probably in the 7-10K range. Much of the capex has at least 5 years usable life left except floors (9 years old) and one heating unit, which is @ year 16 of an expected 20 year life. Roof is less than a year, 1 heating unit is about a year and both water heaters are less than 5 years old. The duplex includes tenants who have communicated that they'd like to sign year long leases but we have until October to better understand the quality of the tenants before committing. 

4. Property management @ 6% is per a prop manager that our realtor, who works with other investors, put us in touch with. However, we are setting up time to discuss with others so this could change. 

5. The utilities are water and sewer based which, if I understand correctly, are typically paid by the owner because they can become liens against the house if unpaid? Only water and sewer are paid by owner as the other utilities are metered separately and paid by tenants.

Let me know if there's anything else I can provide as your experience is a huge help!