All Forum Posts by: Alan Asriants

Hey Wendy. Would be happy to help. I am a local agent that is purchasing about 2 deals a year in the Greater Phila and Phila Area. I specialize in Buy and Hold deals helping clients gain passive income and wealth over time. 

Shoot me a text 267-423-3418 to connect.

Follow your state laws about evictions. But generally in my leases, tenants are not allowed to have guests in my properties for longer than 7 days. If they want to stay longer they needed to get written permission from me and I have the right to check them as an applicant to my property and even deny them. This is a strange situation and unfortunately is case by case per city, township, state law. For future make sure to check all new occupants. As Amber mentioned, it is best to talk to an eviction attorney in the area. 

Well put. To your point - putting down 3.5%-5% down should not lead you to killer cash flows (excluding STR), maybe when rates were sub 3% you could. New investors looking to house hack need to understand that they won't get rich quick here. This is just a great place to invest when you're starting out. If you can cash flow after you move out thats another sign of a good investment. As one investor told me - if your mortgage is covered you are still winning.

Investment Info:

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

Purchase price: $210,000
Cash invested: $180,000

This was my first house hack and. my first deal. I used FHA 5% down to purchase this property. During my first year of living there I did a major renovation that cost almost $180,000 to complete. After completion, I moved out, rented out the property and did a cash out refinance. Was able to pull out 75% of my new ARV of $425,000 (Should be worth closer to 500-550 now). With the refinance, I pulled out roughly 90k. Total investment - about 108k - 24% CoC

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

Was looking to get my first investment. As an agent at the time I was showing properties to clients but also looking at deals myself. Showed this to my clients who were not interested in the property. Ended up running the numbers and securing the deal!

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

Was on a showing with my clients who were not interested in the listing! Negotiated it with the agent directly and represented myself on the transaction

How did you finance this deal?

Using 5% FHA. Needed to make some lender repairs to qualify the property.

How did you add value to the deal?

Full renovation to all units. New utilities, roof, siding, windows, etc..

What was the outcome?

After completion, I moved out, rented out the property and did a cash out refinance. Was able to pull out 75% of my new ARV of $425,000 (Should be worth closer to 500-550 now). With the refinance, I pulled out roughly 90k. Total investment - about 108k - 24% CoC

Lessons learned? Challenges?

YES! Do not panic! It was very overwhelming doing such a large scale renovation as a first project. Contractors lied, things were done incorrectly that ended up costing more to fix. Learn to deal with stress, but most importantly find a good mentor/friend that can calm you down when it feels like everything is hitting the fan

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

I was the agent, happy to help other investors on these types of deals!
Lender - Steve Shvrastman (First FUNDING GROUP)
TITLE - ALPERT ABSTRACT LLC

 best way to get started!

 Was trying to explain this to a young couple looking to buy a large single family. Gave them my recommendation to get a duplex instead. In my opinion, this eliminates the fear of "buying the right home" and gives you more options in the future with your current asset.  

 Exactly! Gives you direct experience without being too overwhelmed. You don't have to go far to fix something, collect rent, etc!

 Love to see it working in other regions as well! 

Whether the interest rates are 3% or 7%, those who are renting are still losing in todays market. I personally believe that all first time home buyers should get into house hacking. Using FHA, paying only 3.5% down with potential of up to 6% in sellers assist. You can get into a duplex for pretty much what it would cost you to pay your first, last and security deposit. But the beauty is… you own it! Yes, with these rates you are definitely not "cash flowing" and I believe that ship has sailed, but if you are renting out the other unit and it is costing you the same, or less than to rent something similar, you are in the green. Don't forget, tax benefits! Depreciating your 400,000 duplex in Philadelphia allows you to write off over 12k a year for the next 27.5 years. Did a repair? Write it off. Did a renovation? Write it off. Of course when looking at a deal make sure you are aware of any major capital expenditures (roof, siding, windows, major Reno, etc).

Hope this helps!

@Gloria A. Like most have said, immediately start the eviction process per your state law.

Big red flag here is having tenants pay deposits in increments.

I require 3 months - first, last and security. I let tenants break it up because sometimes it really does add up to large amount and not everyone is that liquid. Depending on when the move in I break up those due dates. I’ll never hand the keys til I get every penny.

My general rule of thumb:

If prospective tenants are already giving you problems with payment of deposits, setting terms, and giving you a headache about issues (of course not major) about the property, I usually try to move on and look for someone who is motivated and appreciative to move in. I’ll even take a hit on rent to get a better tenant that doesn’t give me problems.

If they are an issue before the lease, they are a problem after