All Forum Posts by: Jon Lafferty

I've put this one on my calendar and will shoot to make it. Thanks @J. Martin for arranging.

@Jay M. 

I've visited there office and spent a day driving around with Jay one of the founding members. My take away is this: I believe that if you have 'boots on ground' in philly you can do much better than working with a turnkey provider. These neighborhoods are C class at best and part of ABC's pitch is that they will manage the property 100% so you wont have to deal with late rent, evictions interesting people :) This is great but will eat into your bottom line. Combine that with a higher purchase price and it becomes only a decent investment at best.

I think @Jay Hinrichs is spot on with his post

@George P. I like the idea of a month to month lease leaving me with some flexibility, I hadn't thought of that. These are definitely good folks who just have trouble managing their money. 

@James Wise I think they would be happy to sign the 2 yr lease, I guess I need to research the lesser of two evils, evicting someone while in lease or evicting a month to month tenant should it come to that point.

I think I will try lowering the rent $45 and see where that takes us. In the meant time I'll let the lease run out and go into the automatic month to month after expiration.

Hello I have a rental in a C to C- area in town and I am finding that the tenants are consistently late on rent. I think at the end of the day they just don't make enough money with rent making up about 40% of their monthly budget. I have had some great conversations with these folks and have talked about making weekly payments in addition to trying to incetivise them by lowering the rent with 6 months of on time payments. They have about 6 months left on their lease and I dont want to lose them but at the same time I want to lose the hassle factor of communicating with them weekly about rent. Having said all that I would like to discuss the tentants signing a 2 year lease at a $50 monthly discounted rental rate. It doesnt sound like a lot but it will be a savings of $600 per year. Any thoughts on this idea? My thoughts are I will lose much more with a month of vacancy. 

Thanks for any suggestions

Welcome to BP @Anthony Tucci . I invest in south jersey as well. I focus primarily on Salem, Cumberland and Gloucester counties. As @Account Closed the SJREIA is great and I have only heard good things about the ocean county subgroup. They have an upcoming 'newbies' meeting Newbies Round Table as well. Of course there is a wealth of information here as well starting with the ultimate beginers guide or UBG.

 Best of luck

Hello and welcome to BP, you will find everything you need to know right here. There are quite a few philly investors on the site to connect with and you can always attend a local REIA meeting. I have been focusing on south jersey and studying the philly markets. To date I only own in nj but that can and will change when the time and opportunity is right. Good luck!

@Nick Payton welcome to BP and congrats on planning out the next chapter of your life with your fiance. The area you are looking in can be tough for cash flow due to high taxes but since you are planning on living there I would look at this a little different. Since this is your primary residence you know you have the opportunity to put a low down payment and get a great interest rate for a long term loan. I think this makes for a no brainer and say go for it. Good Luck!

@Carter McCue @Michael Noto 

I think I am in agreement that this is close to a good deal but not quite there. Probably could go either way. Couple that with the fact that it isn't a hot market and homes tend to sit a bit longer in this town and this one is probably a pass for me. 

@Carter McCue the realtor fees at 10k was actually realtor fees for the sale @ $6600 and 3400 in holding costs for 4 months.

@Michael Noto this is an REO and it has been negotiated down quite a bit. I can probably go a little lower but I'm really scraping at say 58k. I think 24k is right in the middle of conservative and liberal for the rehab budget so I am fairly confident.

Hi,

I am looking for some help analyzing an opportunity. I would like to flip the property but my 2nd exit strategy would be a slim buy and hold.

Purchase price: 60000

rehab: 24000

ARV: 110 - 120k

Holding cost (120 days) Realtor fees: 10000

My plan is complete rehab in 2 - 3 weeks, list ASAP and try and eek out 15k in profit.

Buy and hold exit strategy would be a break even proposition.

Does this sound realistic?

Thanks :)