All Forum Posts by: Yacine Rimmo

Thank you @Ronald Bowser It is unfortunate that the city has to issue fines to keep streets clean but it is one of the most effective way to do it plus it generates revenue much needed post-covid... In my case the trash isn't missed it's really a tenant borne issue.

I think taking pictures is a good way to sort out who does it right and who doesn't. It sounds cumbersome but if that's what it takes.

The first fine we received was because a tenant had ripped out her living room carpet (her child urinated on it), dumped it on the sidewalk (without an type of communication to us) and required we change it which we had agreed to prior not including the rip it yourself part. This is a trouble maker tenant who will have to go her lease is up in 2 days so we just have to work it out with her to not get a warzone in a unit when she leaves...

Other times were trash out before 5pm, trash accumulation on the property... 

I know in normal times eviction take 30 to 45 days, would you have any idea of how long is the eviction process in the current situation?

Hey BP investors!

So I have this property (3-unit) in Allentown PA since March and it feels like I have started receiving sweep fine like it's raining trash on it (ok I'm exaggerating a bit).

Now I certainly don't blame the city for striving to keep the streets and the properties clean. I am the first one wanting it clean. I will note that it was some time before I received any fine and now it's every 2 to 3 weeks. It's got pictures and everything so even thought I could asked the first ones to be waived now it's the 3rd ($150 fine, not sinking my profit but hey!).

I have had the Trash program printed on 11"x17" weather resistant paper and displayed it in the hallway of all my properties. You know just in case they didn't know + individual pager to each tenant on the property in question.

I am at the stage where I have to split the bill and have each pay their share of whatever isn't waived which we told them ahead of time this would happen if it were to continue.

I am very much counting on a tenant ratting out the trouble maker and just probably giving them a single warning before I don't reconduct their lease.

It might cost me more to have them leave than to find a way that works to hold them accountable. Thing is I haven't found the way to find and hold the actual trouble maker responsible...

How would you deal / have you dealt with a similar situation?

I looked at comps yesterday and you see 2 units been sold for 150-160k. 

I knew the market was up but didn't realize it was that much! Returns are getting crushed at this price point.

Looking for additional units in the Lehigh Valley. Only good deals

I'd say there is a combination of things to look at and define your goal on these:
- cash on cash return (if you want more you'd look at not making additional payment to your mortgage), it is operating income but if you have enough it sort of is an operating cushion
- internal rate of return (defined by your cash on cash and the mortgage you currently have) an indication of the actual performance of your investment.
- return on equity (higher if pay your mortgage as less as possible), this is literally how hard the money you have in this deal is working for you.
- equity in your properties and/or liquidity, another cushion but keep in mind your equity isn't liquid (or as liquid) and it varies up or down with the market.

You want to stay performant while not overleveraging. How performant? up to you. Also market condition should push you to be more or less careful and adjust your cushion and your leverage

I did request in writing the cancellation of my forbearance request. The forbearance status, I was told by my bank, only gets reported at the end of the month. So if you don't plan on using it after all for the risks associated to it, get in touch with your bank to know how to cancel it. On top of that make sure to keep your monthly statements showing you made your payments. That's what I am

I did request for forbearance out of precaution in the actual context although I have reserves. I should specify that my intention wasn't to play the system or benefit from the existing situation but minimize the hit the virus will have on my rental business.

I was able to talk to someone at the mortgage servicing company after waiting 3-4 hours on the phone. They offered a 3-months delayed payment with one lump sum to be repaid with a simple attestation that I am affected. After that they would evaluate the situation with me and possibly extend for another 3 months etc, I assume up to what the law allows.

The agreement says there will be no reporting to the credit agency... so it shouldn't affect the credit. Although no information is an information really as long as it is accessible to lender. Also I heard later about lenders already requesting statements such as "I confirm that I haven't been in a forbearance plan in the past xx months"

I am very much considering cancelling the forbearance plan as taking it now seems that it can actually have a worst effect on my rental business than the crisis itself as it could impair my borrowing abilities.

@Keith C. thanks for the info, I'd love to hear further from lenders, loan officers and out here.

Hello Bpers!

I am considering refinancing one or two of my properties in Downtown Allentown (not by Hamilton) and I was curious to know what range you had seen appraisal come back by unit for a multifamily lately.

My latest came back at $49.5k unit and $61.5k.

The appraisal always details different approaches: per sf, per unit, per bedroom, and per GBA then they show the sales comparison and the rental income approaches but it seems the result can vary greatly depending on the appraiser.

Stay safe

@Ronald Bowser Thanks for the reminder Ronald, I think the pipe is cut and filled with grout already but I'll make sure it's checked out before anything.

@James Perdomo Congrats for your three units dude. I want to know more about it, next time we meet ...or DM me! Yeah the permit requirement is pretty new apparently.

@David M. I have a deadline with the CO inspection as our closing timeline was too short for them to come early enough but they are lenient enough we can work it out if we need more time. In the current conditions it just makes sense

So I spoke to the city and here's what they told me:
I can pull the permit myself, it does not need to be done by a licensed contractor. I could do it myself or hire anyone.

So basically removing the tank is cheap and it only cost the permits on top off what I had in mind anyway.

I'm having the seller fix most items in the CO inspection some I had already seen and planned to pick up so no big deal.

@JJ Chojnowski The rational is Fire hazard as far as I have understood it.

I'll probably just call a metal scrapper if I can have him come cut it and take it away.