All Forum Posts by: Anthony Zayas

@Mark Edler Can help you out!

@Luis Sanchez Rodriguez After some googling it seems as though this won't be an option that I could benefit from if I am using my companies 401k matching program. Info on SDIRA

@Luis Sanchez Rodriguez I appreciate the response! I remember hearing about this during a BPP but it definitely seemed complicated and I have no idea how I would even proceed with such an endeavor. Thank you for the reminder on the subject, I definitely will research some more!

Greetings BPC! 

I decided to randomly take a trip this past weekend and self reflect in order to rebase myself and establish my goals for the next 3 years. However, I'm stuck on what I should do in the short term in order to achieve my goal. Any advice would be appreciated!

My Goal
Own a ~$1,000,000 ranch/farm in the suburbs of Philadelphia. This house would also serve as a retirement home for my Grandparents and sprouting for future family. 

Money Needed
The estimated mortgage payments would be ~$7000/month. However, I assume interest rates will rise within 3 years thus increasing my monthly payment. In order to afford the mortgage payment, I would need roughly $10,000 in gross cash flow per month. 

I currently make $7,000/month gross so I would need an additional $3,000/month in net cash flow to meet my minimum amount required. However, this would leave room for nothing else and I would be negative after accounting for living expenses. 

Ideally, I would like to net $2,000/month. From my math, this means I would need a gross income of ~$153,000. 
For a house of that amount, I would need ~$200k for 20% down, or ~$50k for 5% if going FHA.

Current Assets 
I currently own 2 properties, and are in the process of acquiring a 3rd or more. 

Property 1 - $118,000/$135,000 LTV
$700/month mortgage 
$1,100/month in rent
= $ 400 Cash Flow pre expense 

Property 2 - $0/+200,000 LTV
$0/month mortgage
$1500/month in rent (very conservative)
= $1500 Cash flow pre maintenance expense 

Potential Property 3 - $80,000 /$110,000 LTV
$300-350/month mortgage
$1000/month in rent 
= $650 Cash flow pre maintenance expense (expenses low due to newer roof)

I can possibly acquire 3 more properties almost identical to property 3 over the next 2 years. 

The Dilemma 
Knowing the above information. My company offers a 401k matching program of 25% of my contribution up to a maximum of 10% of my salary. If I were to acquire more properties similar to property 3, I would need cash for down deposits. Specifically  20%  for investment loans as I don't think an underwriter would be convinced that it is not an investment property since they are all within .1 miles of each other. However, If I were to save money for my long term goal in my 401k. I would have $31,875 to be used for hardship withdrawal for a mortgage payment (assuming I don't get raises/promotions). 

In Conclusion
Should I invest in my companies 401k program or use the money to acquire more investment properties? This is a mouthful/rant so thank you to anyone who decides to read this.

Honestly, I am in the same boat within Philadelphia. Issues being the good contractors have consistent work and thus are taken. I'm not sure if you have tried the home depot method, but visit home depot in the morning when they open and get information of contractors supplying there. Hopefully one lands for you. 

I personally have searched facebook, craigslist, yelp and even googled and have come across the same issue of unreliable contractors. I have even obtained bids and agreed to pay their price, only to have them bail and suddenly disappear. However, if you need a licensed electrician, I do have a contact! Just connect with me!

@Peter Walther You are correct in your reading of the statement. I have also just become aware that on closing, the previous owner signed an affidavit attesting to not having any encroachment since no survey was done.  

@Lynnette E. Wow that was a lot of information, thank you for it! I am currently seeking/speaking with lawyers and thanks to you I have a basis to work from. This has been a pretty stressful embark, so being informed only helps ease my mind. 

@Josh Caldwell The current owner is willing to work with me, so I don't think I would need to file a claim of adverse possession. I appreciate the advice though. 

@Josh Caldwell Unfortunately I don't know exactly how long ago it was built. The current owner is definitely willing to work with me too.

Greetings BiggerPockets community,

I recently purchased a carriage house bordering the Norris Square section of Philadelphia. However, it has come to my attention that the garage portion of the house was expanded many years ago, taking over land of the adjacent property. The previous owner has owned both of the properties and it has been within his family for generations. 

My concerns are: 

1. I want to do renovations to the property. Specifically get a use variance to legally have two apartments and have the bottom garage be used for commercial purposes. However, I have been told that when I submit site plans for permits. They will be denied since my property encroaches on the adjacent lot. 

2. I have been recommended a site plan, then a subdivision plan in order to legally go through the process of obtaining the portion of land in question on my deed (this seems pretty costly). 

3. Lastly, I have been recommended to obtain an easement of the land in question as well as rights to the outside wall of the adjacent property (my garage ceiling joist are attached to it). Can I still build on easement property? 

Knowing my objectives, which would be my best approach? This has turned into only 1 of the many headaches I have been experiencing with this poorly and illegally built property but thus is the learning process of real estate (this is my first investment property). 

In regards to cost I have been quoted thus far:

Site plan: $2450.
Subdivision Plan:  $2000 - $2500
Lawyer: $350/hr

Are these fair numbers? I am working on obtaining more bids for surveys. Don't know many lawyers. 

Property Information:

Address: 2319 N 5th St
Lot Size (legally) : 824 sqft
Zoning: RSA5
Area Encroached Upon: ~ 60sqft
Purchase Price: $70,000
Comp: $185,000 Addressed: 2347 N Philip St
ARV: ???