Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Adam S.

Adam S. has started 3 posts and replied 20 times.

Post: Tracking Rental Property Expenses

Adam S.Posted
  • Investor
  • Allentown, PA
  • Posts 20
  • Votes 15
Karina Woodward . Send me a PM with your email address and I'll send you a copy. Thanks!

Post: Flip property or rental property

Adam S.Posted
  • Investor
  • Allentown, PA
  • Posts 20
  • Votes 15

@Scott Howell - Nick provides some really good information you will want to consider as you progress.  The good news is you can blend vertices if it factors into your overall strategy.  I would do some secondary market research half way through your flip to determine how much you could possibly rent the house for vs how much you anticipate being able to make on the flip (you would know this anyway if you were looking at your variance to your original budget).

That being said, if the property happens to be in a high rental area (like around the colleges in WB) it might make sense to rent considering you will have a consistent flow of new renters. 

Part of my personal strategy is to use the proceeds from flipping to make smart decisions in the buy and hold vertical.  If everything falls into place I would like to be sitting on a couple hundred units with positive cash flow while still being able to flip properties to generate revenue.

Hope this helps.  I'm not to far away from you and sometimes head up to WB for work purposes.  Let me know if you ever want to catch up and discuss.

Good luck, keep us in the loop as you progress.

Thanks,

Adam

Post: My First Real Estate Deal

Adam S.Posted
  • Investor
  • Allentown, PA
  • Posts 20
  • Votes 15

@Chris Sullens - Love seeing success like this on a first deal.  The property looks great.  Congrats again!

Post: Need Title Company in Bethlehem, PA

Adam S.Posted
  • Investor
  • Allentown, PA
  • Posts 20
  • Votes 15

@Jonathan Emery - Please let me know when your REIA group is formed and plans on meeting. I would love to attend.

@Rich Johnson - It seems like you may have the info you are already looking for. I have a meeting tomorrow with a local real estate attorney and I will ask if he has any contacts.  If he does I will forward them along. 

Thanks,

Adam

Post: Is it possible tofind good deals on Zillow ?

Adam S.Posted
  • Investor
  • Allentown, PA
  • Posts 20
  • Votes 15

@Abraham Breuer - I think you can find a good deal anywhere depending on the details and how you plan to purchase.  You could always search by oldest available listings, run your numbers, and then offer cash.  I think the most important part of any deal is figuring out the sellers motivation to move the property.  Once you know that, you can offer the solution (as long as the numbers work for what you are trying to do).  Good luck,  We would love to see a future post from you regarding your findings.

Thanks,

Adam

Post: Investing with a Full-Time Job

Adam S.Posted
  • Investor
  • Allentown, PA
  • Posts 20
  • Votes 15

Brendan - Congrats on looking to "take the leap."  Your question can be tough to answer without some additional info but I will share with you my overall thoughts as I'm currently investing while working a full time job.

1 - Ensure your profession allows you some sort of time to "break away" to handle issues as the come up (and they will).  I'm not sure about the time constraints of being an architect but you want to be sure you have the flexibility to answer the phone if/when needed

2 - It all depends on your investment strategy but you will want to build a solid team around you that can deflect some of the noise that comes with being a RE investor.  We primarily deal in buy and hold right and we have an awesome property manager that only reaches out when things hit, what we have determined to be, level 10.  Same would go for finding a trustworthy GC if you intend to flip

3 - Structure and process.  I can't preach this enough.  The RE game is fluid and requires a certain amount of agility but the more structure you can put around it the better chance you have of being successful (my opinion).   As an example, maybe you set up a process by which your real estate agent vets the deals for you.  Once the deal hits a certain criteria it gets pushed to you for final approval before an offer is made.  That way you aren't spending all of your free time searching for and vetting deals

4 - Be prepared to put in the extra time.  This seems like a no brainer but at some point you will have to spend time after work or on the weekends working on your investments or your business.  Make sure the people in your life understand this and support you.  Having that support makes the conversation way easier when you look at your significant other on Sunday at 3pm and tell that person you have to bail on  family dinner because the deal of the century might have just dropped into your lap

5 - Research.  You are a step ahead of the game by posting here but I would suggest you check out the BP Podcast.  Go back and look for shows that deal specifically with investing with a full time job.  They are easy to find and provide a lot of good insight.

Good luck on your architectural journey as well as your real estate investment journey.  Keep us posted as your progress or let us know if you have any other questions.

Thanks,

Adam

@Christopher Jenkins - It's easy to fall into the carousel of research with no end in sight.  My advice is to find the area of real estate that plays to your strengths and that you are passionate about.  For example, if you have a ton of construction knowledge and good amount of free time you might be geared up to flip a property.  Busy schedule and want to be "hand's off" and you might want to look for a buy and hold project with a property manager.  Regardless of what option you chose to go with on your real estate journey you should first sit down and really put together a high level strategy.  This could also help you find a partner in the short run as someone with experience or money will want to partner with someone that has a clearly defined strategy to generate returns.

Good luck on your journey.  Keep us posted!

Post: Analyze my Deal please!

Adam S.Posted
  • Investor
  • Allentown, PA
  • Posts 20
  • Votes 15

Michael - I would factor in the following as a "cost."

 - Vacancy (percentage of your monthly cash flow saved for when you have a vacancy)

- CapEx (capital expenditure - money needed when something larger goes wrong. Roof, HVAC, etc)

- Utilities

- Property upkeep (grass cutting, etc)

I currently budget 7% for vacancy and 10% for CapEx on my rentals. The CapEx may seem high but the properties I'm invested in have a high probability of needing work (not the best area and slightly older).

At your current math (without vacancy or CapEx) you would cash flow $389/m (I used $2,200 as your rental income). It would take you 11 years of consistent rent to re-coup your down payment. I admit this doesn't factor in raising the rent as time goes by but you might want to factor that into your overall strategy. Is the property worth holding on to for that long before you see a true return on your money or are you confident that the appreciation/loan pay down will work out greatly in your favor in the same time frame.

I'm not in favor of the numbers presented but it really comes down to what your short term strategy, long term strategy, and appetite for risk are.

Good luck either way.  Please keep us in the loop as you move forward.

Thanks,

Adam

Post: Need some advice on a first flip

Adam S.Posted
  • Investor
  • Allentown, PA
  • Posts 20
  • Votes 15

Matt - Congrats on finding the deal.  @Thomas Franklin posted some amazing info you should take into consideration when analyzing your deal.  I won't be able to add anything from that standpoint but may be able to offer you some general feedback.  Here are my thoughts:

-   I would search BP or the internet for a good spreadsheet that you can walk through the property with.  Some of the good ones will force you to look at costs of flipping that are easier to overlook.  The more comprehensive the better.  You don't want to get to the end of your project and realize you have to pay your painter an extra $500 to paint, install, and caulk quarter round (yup, I made this mistake).

-  The two hour drive time is concerning.  I'm not doubting your construction knowledge but I know that when something goes wrong (and it will) having to drop what you are doing and drive two hours can be tough.  If you are going to hire a GC to complete all the repairs you will want to put that person through an extensive vetting process.  And don't tell whoever you are hiring to do the job that you are two hours away.  I don't want to put all contractors in the same bucket but some are probably more likely to show up late and finish early if they know it's unlikely you will be stopping by everyday to look at the job based on your distance away.  Side tip that has worked for me; structure your contractors pay based on completion time and work quality.  Ex - Finish in 4 weeks and pass your quality test; get paid X.  Whatever you do, make sure you build quality into the mix or you will have contractors blowing through the job at lighting speed and sacrificing quality

-  Be as thorough as possible during the inspection.  Look for the big items that will sabotage a budget.  Mechanicals, foundation issues, sink holes on the property, structural issues, etc.  The more thorough you are during the inspection, the better chance you have of not being blindsided halfway through the project.

Good luck with everything.  If you end up getting the property make sure to post some info and keep everyone in the loop as you go. 

Thanks,

Adam

Post: Tracking Rental Property Expenses

Adam S.Posted
  • Investor
  • Allentown, PA
  • Posts 20
  • Votes 15

Alex - Congrats and good luck.  I did a good amount of research on the subject myself and finally ended up creating a hybrid of a couple sheets tailored to my needs.  Send me a private message and I would be happy to share the sheet with you.