All Forum Posts by: Anthony Zayas

 Inspections, requirements, perceived poor financial standing of buyers, those are just some of the things I can think of off the top of my head, but i'm sure more info can be found if you do research.  

If you have not already done so and are free Thursdays at 8pm, join the local online real estate meetup hosted by Jonathan Green. Here is a link to the BP forum post. See you soon~ 

@Alexandru Nedelcu 

Thank you! The units themselves will eventually need full rehab to make them competitive in the future, but for now I was going to simply update the bathrooms and kitchen. 

In regards to numbers, I currently plan on renting each unit for possibly 1000-1200 and 800-1000$ respectively. This makes it a minimum 14.4% or more cap rate, 27.3 CoC, which include about 4k on repairs.

I identified it was a good deal because I know this specific market (19122) very well. Including all the reasons Alex Uman mentioned.

@Alex Uman Unfortunately, I feel like those prices would be a bit high if my target demographics were students given the current condition of the property and it's distance from Temple University itself. Generally, new construction finished places rent for about 700-750$/room. Given how much new construction is occurring in the area, AND the fact that students are renting them. It made me feel confident in the deal. For this property, I am aiming for about 500-600$/room for the 2 bedroom unit.

Covid did lower demand for student housing, but this will change in the Fall as Temple University has restricted on-campus dorm offerings.  

Investment Info:

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

Purchase price: $150,000
Cash invested: $32,000

My first legal duplex near Temple University! This marks both my 3rd property and both my 5&6th units!

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

My goal for the year was to purchase two units. This satisfied that goal and was within a market I am very familiar with.

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

I found this deal on MLS. It was relisted and I put in an offer within 5 days of the listing being up. I offered 20k less but was willing to beat any other offers with proof. Another offer came in as cash, but mine was higher. However, after inspections I was able to renegotiate a drop of 35k from listed price.

How did you finance this deal?

The deal was financed with a conventional loan and 15% down.

How did you add value to the deal?

My knowledge of the area helped me realize this property was a good deal. If offers both positive cash flow and appreciation potential.

What was the outcome?

Now I have my first legal duplex and I have the rest of the year to work on other goals!

Lessons learned? Challenges?

Have a structural engineer on hand. I was lucky enough to get a structural engineer to come within 3 days of our counter offer to be due. Simply because they were already in the area. Their report allowed me to renegotiate my offer with the seller.

As others have mentioned, you will be in competition with cash offers. The only leverage you have is possibly being able to offer more. I am purchasing it via conventional, but I was only up against another cash offer and had my offer in within 5 days of the listing being up. You have to be fast with today's market and have your finances in order so the seller feels confidant in your ability to purchase.

It really comes down to your price range. There are not MANY duplexes in that price category. Since you also are limited to having an FHA loan, it really does not make your offer appealing to sellers. Your only hope would be to offer above asking, and being one the the first people to look at the property. That means keeping your eye on realtor.com/zillow everyday. I noticed setting notifications on these sites can still be delayed by a day.

Also if you were to put in an offer at 170k, this does not mean you can't renegotiate down depending on inspections :). I am acquiring a duplex, offered 172k and after inspections I went back down to 150k. Best of luck!

Anyone know this to be true?

@Jake Pinto Welcome to BP Community! I currently am investing in Philadelphia. I would probably start off with what you are looking to obtain in regards to an investment. Some areas in Philadelphia have more cash flow potential but less appreciation and vise versa. So determine what you want to make and just browse the mls constantly. Otherwise, try cold calling. I have not seen many good wholesale deals come through the philadelphia real estate facebook group. 

@John B. When looking at a property, check to see if it is basically anything RM1 - CMX etc. Those properties can be converted by right without having to go through the use variance process!

Hi! It heavily depends on the zip code/neighborhood as some communities are more vocal than others. The process itself is pretty straightforward and instructions can be found on the city’s website.