All Forum Posts by: Yechiel W.

Hi Steven,
How are your properties doing in Morrisville. The area seems stagnant from the Census. I drove around there and it did not seem like a vibrant town. Schools are sub par. Homes are old and and run down and some vacant. Looks like they require a license per rental from the city. Is it easy to find renters? Are they quality renters? Do you see a bright future with Morrisville? Are there any drivers to bring people hear? Just seems like a desolate sleepy town imo. Please prove me wrong as I would love to get your take on it.

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Quote from @Alan Asriants:

Quote from @Yechiel W.:

Quote from @Dave Campos:

Is anyone investing in Bucks county, Pa? If so, any markets i should be looking? Im Currently looking for a duplex

Hi Dave,
How have your past few years been since your post. I am yet to find any Cash flow properties in Bucks County especially with these interest rates. Technically, if you put 50-75% down almost anything would cash flow but then you would be cash in heavy. This county seems more like a fix and flip territory. The Multifamily is far and few between and the ones I saw are in poor state. I'm torn about investing local or going oos. Philadelphia has horrible landlord tenant laws some possible places in rought places like Allentown.

Hey Yechiel, bucks county right now is a super tough market for entry for investors. While it is hard to get in, renting out your space should be rather simple if you are charging fair rates.

The best returns I am seeing with my clients is investing into turnkey real estate and putting 25% down (25% gets you better rate than 20%). Its not killer cash flow, but there is cash flow.

Don't expect to start deducting things like vacancy, maintenance, cap ex, etc. As soon as you discount gross rent, nothing cash flows.

Take your gross rental income and subtract it by your PITI and thats your cash flow. Thats why people continue scooping up these deals.

To be honest, I think that the mulit family space will only continue to grow in price in bucks. The limited amount of built as multi family is scare, and even less common do they come out to the market.

If you compare the returns of mulit family in bucks to the city, bucks county still performs better because of high rent demand.

I think prices will go up until investors are breaking even with 25% down. This is just speculation, but supply and demand drive the market...

Reach out if you want to connect or chat more about the market

Alan,
My question is why do you say not to factor in other expenses other than the PITI for net income. Doesn't vacancy, cap ex, maintinece apply to bucks county homes just like any other homes. You essentially would be digging deep into your own pocket when these costs arise. I dont want to sugar coat it. If it doesn't cash flow it does not cash flow period.

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Philadelphia, Pennsylvania

Quote from @Dave Campos:

Is anyone investing in Bucks county, Pa? If so, any markets i should be looking? Im Currently looking for a duplex

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Philadelphia, Pennsylvania

Quote from @Richard Gottlieb:

My brothers and I are. You can check out our YouTube channel (Jews with Screws) if you're interested in following us as we flip in Bucks county. We primarily stay in lower Bucks county (Levittown, Langhorne, Feasterville, Croydon, etc.). I'm not super familiar with the area, but prices are definitely lower if you make your way to middle Bucks county (Quakertown). Like I said though, I'm not very familiar with that area, I just see the listings come up and they're much cheaper than lower Bucks.

Duplexes are pretty hard to come by because they get bought up so fast. If you find one sitting on the market then the numbers probably don't work, or it's in need of a very serious rehab. If you're willing to be live in one half and rent out the other then you'll have a better ability to make it work out for you.

We've focused on finding distressed properties and then flipping them, but we're able to make the numbers work since we do a lot of the rehab ourselves.

If you have any questions feel free to message me!

Great Channel big fan!

1 Vote

Philadelphia, Pennsylvania

Quote from @Ko Kashiwagi:

Hi Yechiel,

What are you top priorities and goals? Cash flow, appreciation, stability...? Columbus has really good outlook on appreciation. I also come across a lot of investors acquiring great cash flow deals in Cleveland and Cincinnati.

Hi Ko,

To be perfectly honest both. I'm looking for enough cash flow to cover any incidental costs of upkeeping the property so I don't have to eat the cost of any capital expedlnditures, vacancy, maintenance etc. I am patient that living off the cash flow would come a few years down the road, as the loan is paid and rents gradually go up and or rates go down. Most importantly not to run negative as would halt further investing. By negative, I Mean cash flow positive even just a few hundred per month for anticipated costs. The barrier of entry in the good neighborhoods can be pricy so looking for a balence of the best neighborhoods with a relatively reasonable and attainable cost of entry.

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I'm considering my first investment purchase and was speaking with my lender and basically if done in my name vs the LLC would be 1% higher in interest rate. He mentioned that there is no issue i.e. transferring with my specific lending product and can due a cost analysis between starting on my name with 1% less in mortgage then paying the 2% PA transfer tax to move it to an LLC. I'm sure there is way more headaches to factor into the equation that I am not aware of. Ie. Accounting headaches.... I was also concerned if would compromise the corporate veil if initially was in my name then switched to an LLC even with a separate account and everything.... I was also considering that it would defeat the privacy of ownership of the property that the LLC provides...

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Quote from @Min Zhang:

hi Yechiel, I personally love the Cleveland market for its cash flow. I invest heavily in this area as an agent. I grew up on the east side of the town with a well versed knowledge of the neighborhood. I do have clients buy in those area, generally anywhere from 8-12% COC return. As far as Columbus goes, it's more of an appreciation play. Let me know how I can help!

Thank you!

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Quote from @Nicholas L.:

@Yechiel W.

every single market in the US has good neighborhoods and more challenging neighborhoods. the lehigh valley has had pretty consistent population growth over the past few decades, even post COVID. i don't invest there but i have friends that live there and they love it. the suburbs of Allentown I think have great potential.

columbus is a great place to invest, too. i just never see new investors actually have a plan to be successful out of state. their plan is 1. buy something on Zillow and 2. hope for the best. that's not going to work.

here's a plan for you:

-find all the REIA meetings within a 2 hour radius and go to all of them. pick the ones you like best and go to those every month or week or whatever.

-find an investor friendly agent and tour 50-100 properties. run numbers on those. don't run numbers on Internet properties on Internet. worthless.

-connect with folks sourcing off market deals and start reviewing those. see if you think they have potential.

if you can house hack, even better. can you house hack? if you can house hack, house hack.

good luck

Hi Nickolas,
That is definitely solid advice and I definitely see your point. Part of me is like 100% yes to do all that for at least my 1st deal and then branch out to oos. My work is so time consuming I'll probably hit up a couple meetups in my area and really keep my radar up of there is indeed something or some niche here. I'm reading David Greens book on out of state investing and you cannot fathom how much Columbus is bursting with influx and opportunities. Perhaps not as the scale here. I'll definitely keep ans open mind.

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Quote from @Remington Lyman:

Quote from @Yechiel W.:

I was looking into SFH or small Multifamily and have been looking into Philadelphia and it seems not so Landlord friendly per the (landlord tenant laws and asking around) Many areas are over priced (i.e. Center City) and other areas are war zones. There isn't much cash flow in Bucks County PA from what I see and some of the fringe areas have a flat population with little growth. NJ comes with its own issues. I have seen many mention OHIO specifically Columbus. Looks like at least 24 major corporate headquarters there and lots of different industries (universities, government, Hospitals etc) I want to do a deep dive into Columbus but want to see what you all think about other Cities in Ohio like Cincinnati. I understand that location is super nuanced, but before delving in on a micro scale I wanted to know what the big overall picture is in your Opinion! Thank you so much!

I like Cleveland as well. Columbus, Ohio has seen a rapid growth in jobs and population. Cleveland is amazing for cash flow.

Hi Remington,
Thank you for your insight.

Which areas in Cleveland do you find that quality tenants are attracted to living as a bad tenant can make all the cash flow vanish and without good appreciation there is not much to salvage your investment. Hence, If I consider the cashflow play, there is little room for hiccups I would imagine.

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All Forum Posts by: Yechiel W.

Yechiel W. has started 2 posts and replied 29 times.

Post: Airbnb's no-camera policy

Post: Buy and Hold investing in Bristol, PA

Post: Finding markets in bucks county

Post: Finding markets in bucks county

Post: Finding markets in bucks county

Post: Which city in Ohio to start out?

Post: Transfer title of properties to LLC in PA

Post: Which city in Ohio to start out?

Post: Which city in Ohio to start out?

Post: Which city in Ohio to start out?