All Forum Posts by: Adam Costa

Yes sir, for a 3 bedroom in Glenolden 1,200 is on the low side. 

Al, 

I'm licensed in PA and work in Delco. If you have any questions feel free to direct message.

happy to help. 

Why not find your own representation?

Hi Alfred, 

I've been looking pretty regularly in those areas as well (namely Glenolden). I'd actually give most of the rentals a B or better. My reasoning is that most of these homes (Post war brickers 3/1/1 or 3/1) have been owner occupied for years and in many cases you can scoop up 30 years of someones work for 85k. They typically rent in the 1,200 range and are very sturdy (Brick, basement/garage access etc.). 

Good morning BP, 

In the early stages of putting together a formal partnership for a buy and hold purchase. I am looking for some opinions on structuring the deal. We have both agreed that everything will be 50/50 in terms of ownership, that is mission critical. My partner is in a better place in terms of capital and I am handling ops (I'm a licensed Realtor in DE and PA and manage a KW office). We are going to self manage and we are shopping in the 80-110k range for a long term hold. We have had some "back of the napkin" discussions about initial funding. For simple math- if we need 20k to close and he puts up 15 and I put up 5 what is the smartest/fastest way to get to even aside from my Partner receiving a the larger portion of cash flow until his 5k is recouped. 

Other factors- 

-Plan is to buy with residential/conventional financing. After an acceptable period of time xfer the deed into an LLC and hold the debt note in our civilian names.

-We will be meeting with my CPA to discuss strategy as well. 

Thank you. 

 Not my lender at this point. A lender I was speaking to at an event. I wasn't following him either, which lead me to reach out to the community for more information. Glad I did. Thank you, Greg. 

Thank you for the response. The lender I spoke with made me aware that upon conclusion of the owner-occupied period the HUD home store properties were available to investors and qualify for 203k financing with 15% of the ARV needed in hard money to qualify.

Good morning BP, 

I was speaking with a lender yesterday about the BRRR strategy with regards to refinancing to pull the hard money out of the deal. He suggested waiting out the owner-occupied period on a Hud House as a 203k loan can then be used for the rehab. Has anyone had any experience with this strategy?

 I agree with Rich as I grew up in Delco (and rented there briefly). What you need to be mindful of when looking in Delco are two big things. #1- The Taxes in Delco are cash flow black holes and some areas have started issuing ordinances to the tune of "If you own a rental property in yadda yadda twsp it must be equipped with sprinklers and other fire suppression systems.  This, being a way to stave off rental communities. 

@Zachary Foust

Hello Zachary. I live in N. Wilmington and I worked very close to that house. In fact, that house is .7 miles away from very big attractions like Iron Hill brewery, Big Fish Grille, the kids museum,  trampoline park, baseball stadium, Kooma Sushi and many other riverfront attractions. It's very big area for growth and it's where I am looking to get some buy and hold rentals. The War Zone doesn't start until Maryland avenue and the area is flush with jobs by way of the Westin Hotel and the financial districts. I live close (10 minute drive) if you need something quick there (photos etc).