All Forum Posts by: Alan Asriants

Investment Info:

Single-family residence wholesale investment.

Purchase price: $34,000
Cash invested: $1,700
Sale price: $95,000

As an agent I run advertisements through Zillow to get connected with local homebuyers looking to tour properties. I got connected to a lady who wanted to tour a few properties and kept talking about a piece of crap house her father wanted to sell. She never let me inside of the property only opened the door for me to see inside. It was a dump. I offered her 34k. She accepted and we closed in 3 weeks. Turned out her sister was a squatter. We removed her and sold the property for 95k on the MLS.

What made you interested in investing in this type of deal?

I kept hearing her mention her fathers house and how bad it was. She kept insisting that I would never want a dump like that. Words like that are gold for investors. So I kept trying to explain that I actually prefer properties that are worse off.

How did you find this deal and how did you negotiate it?

A zillow lead called in to tour a home. She ended up having a home that was in complete disarray. She let me take a look at the property from just the front porch. It was clear she was covering something up, so i gave her the value of the land for the property. I assumed the worst and let her know that I was taking a big risk. I offered her 34k and told her that I wouldn't be responsible for any liens. She walked away with 15k.

How did you finance this deal?

We purchased with Cash

How did you add value to the deal?

We cleaned out the property of all of its trash. Removed the squatters.

What was the outcome?

After removing the squatters and securing the property, we listing it on the MLS for 85k. We received multiple offers and sold it for 95k.

Lessons learned? Challenges?

If someone is not letting you inside of the property, assume the worst! Buying a cat in a bag is exactly that! It's better to lose out on something, then to find yourself climbing out of a hole. If you hear anybody talking about a crappy property think $$$!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

This was a private deal and wasn't financed. Title company was Alpert Abstract LLC

 absolutely. What do you think? Some people abuse the "service animal" card? 

 I would certainly prefer cats over dogs. only thing I know about cats is their pee stains and destroys subfloor, cant do anything about it and must be replaced. That odor does not leave. That being said, if its that bad, I have other things to worry about lol

 Good to know Eric, thank you for the tip

Hey Yariel,

I have some experience renovating and gutting homes in Phila. Generally speaking it depends on the cap ex required. A lot of new buyers really overlook things like plumbing, windows, electrical, heating/cooling as those items can really jack up your costs. Also, was the propertly recently gutted? Is it plaster walls everywhere? Generally with this older 1900 Row triplexes - they were converted at some point (50s,60s etc) and often times utilities arent properly separated (no way of really knowing), reminisce of knob and tube electrical (must be converted/fire hazard), older plumbing. Plaster walls make it a B**** to work with. I ran into this with my first rental. It was an older Triplex that was poorly converted. Ended up gutting the whole thing - cost me about 180k (2020) - so likely these construction costs could be higher. 

Unless it has been recently gutted, has new plumbing (PEX), and new electrical, I wouldn't recommend. Also, once you start renovating, depending on where you are in the city, you can find yourself facing L&I. It is now required to install sprinkler systems in triplex (another 30k approx).

I recommend going for built as cookie cutter duplexes. You can find them in Northeast Phila (strong rental market right now), and roxborough. Hope this helps

 Due diligence is key. Like I said, my favorite tenants have a dog. Best of luck to you

 agree to disagree, but I understand where you are coming from. Im usually not going to allow them. But I am open depending on tenant. 

There's a common belief among landlords that pets are an absolute "no-go." While I prefer not to have pets in my apartments, I don't always provide a strict no. The main reason behind that is tenant quality. I mainly purchase properties in A and B class neighborhoods and all of my new rental listings are well renovated (stainless steel appliances, granite countertops, central air, recessed lighting, updated flooring, etc.). This means that I am attracting A and B class tenants to my properties. From my experience it isn't the pet that is the issue - it is the tenant. If you have a high quality tenant that is clean, organized, cares for the place; chances are, their pets will also be clean and behaved. With more millennials and younger generations moving out, these people are having pets at higher rates than generations before, and eliminating them from your rental pool could be hurting your bottom line. 

Now just because the tenant seems great on paper doesn't mean there aren't exceptions to the rule. If Im renting out an 800sq ft 2bed 1bath apartment, Im going to think twice about letting a 150lb mastiff stay at the place. That's just not enough room for such a large animal. A small/medium sized dog or a cat is ok. Also, if I have any concern or doubts about the tenant and their current living situation I will do two things: ask all of their previous landlords for a reference and I will ask them to show me their current place and how they are living. If those boxes check out, I move forward with the applicant. 

I don't charge more for rent but I do collect a $500 or 1/2 month pet deposit. 

If you're current tenant wants an animal - tour their apartment see how they are living. If all is clean and well kept, tenant pays on time, etc - why not let them have an animal. They will likely stay longer, keep paying, and be even better tenants to you. (Had this from experience - they are my favorite tenants)

Bottom line - Pets are not usually the problem - it is your tenants. Screen your tenants, then decide if you will accept pets.

Hope this helps

Alan Asriants

REALTOR

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Phila.

Purchase price: $359,900
Cash invested: $110,000

While purchasing my duplex house hack, I was contacted by an agent that was inquiring me about what price I had my current duplex under contract for. They had a similar duplex across the street hitting the market and wanted to get an idea what was a good listing price. The agent gave me a call back a few days later, allowed access to the property and gave a very fair listing price based on what I was purchasing mine. I made her an offer at her list price without any contingencies to lock it up!

What made you interested in investing in this type of deal?

I wasn't aware of this deal until the listing agent reached out to me to inquire about my contract price on my current house hack deal. After they stated their desired price, I believed it was fair and gave them the price to avoid them putting it up on the market. It was nice that they were still offering a commission on a private deal.

How did you find this deal and how did you negotiate it?

The deal found me!

How did you finance this deal?

Using a no doc DSCR Loan - at the time the rate were wonderful - 4.875% no points!

How did you add value to the deal?

Did a small renovation to upstairs unit and garage. Bumped rents to first floor from 800 - 1200/m

What was the outcome?

The second floor was vacant before closing and need a light rehab, putting in 18k. The tenant on the first floor stayed and we increased their rent from $800/M to $1200/M. This is still below market but we thought it was fair since the tenant has been very good to us. After our renovation and investment to purchase the property we are cash flowing $1263/M which gives us a 13.8% CoC

Lessons learned? Challenges?

Sometimes while pursuing opportunities other opportunities find themselves to you. Learn to take advantage, don't negotiate too much to risk losing the deal - especially if the deal is already good.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Real Estate Agent: Myself
Lender: Dmitry Shamis (AMRES)
Title: Alpert Abstract LLC

@Immanuel Pierre

Yes forgot to mention this was in PHILA!