All Forum Posts by: Ben Fernandez

Be sure to check the classified section. I have one there I placed today.

🚨 Off-Market Value-Add Real Estate Opportunity!

-Assignment

🏠 Hourly & Short-Term Rental | A-Class Asset | Riverfront District | Harrisburg, PA

- Commercial use eligible - 

✨6bed/3ba, 4,538 SF, Built 1914

🔑 Market Value: $465,000

💲 Purchase Price: $435,000

💵 *50% Down - Owner Finance Potential* ($445k)

💰 Potential Earnings (EGI):

- AirBnB: ADR $425 - $100K/year

🔨 ARV: $800K (7.5% Cap)

- VRBO: ADR $700 - $168K/year

🔨 ARV: $1.34M (7.5% Cap)

- PeerSpace: AHR $150 - $300K+/year

🔨 ARV: $2M (7.5% Cap)

Don’t miss this high-return, low-entry investment! 🌟

➡️ 75/25 - if agent brings buyer.

Connect with me for your buying or selling real estate needs.

📞 (717)945-7040

Ben Fernandez | Licensed Realtor®️| #RS375669

Keller Williams Keystone

Email | [email protected]

Cell | 717.945.7040

Office | 717.755.5599

Office Address | 2610 Course Rd, York, PA

What are they doing? Throwing parties, mining bitcoin...? Using outlets outside of their unit in common areas...?

See if there's anything that breaches the terms of your lease. If so, pursue eviction or course correct ASAP. If not you're stuck until the lease renewal.

Using Rentometer to quick reference rent rates in Tuscaloosa, it provides a range of $1,000 to $1,200 per month for 3bed/1ba single family homes. When I changed the amount of bathrooms to 1.5+, to my surprise, the range goes from $1,500 to $2,500.

So, depending on the opportunity it appears you should find options that will cash flow. 

Population and employment also appear to be on the rise. I'd say you have chosen a good metro. Just be careful to not overpay, use spotcrime.com to vet safety and focus on identifying the paths of progress.

No. There are too many variables to use a specific metric across an entire metro. 

For example; school district, historic district, number of bathrooms, location, AC vs no AC, furnished vs not furnished, laundry, parking, condition, amenities etc. All of these variances can all make up the average SF you're referring to. But, it will not be applicable to your specific property.

Use the appropriate rent comps and your property's specifics to equate your potential rate.

Today baby boomers are retiring at high volumes. In respect to this, Lancaster has made national news articles as being the best place to retire. A CNBC report provided 4-5 cities in PA and about the same amount in FL.

Although, it depends on your investment strategy, I'd definitely mention PA as a stable and effective place to invest.

Outside of that, I'd recommend going where demand is highest. In respect to demand, population change is your best friend. Therefore, you can't go wrong with Texas. Just be mindful that the most popular destination cities may still be undergoing a correction - regarding property value and rent rates.

Feel free to connect anytime. I am a licensed realtor in PA and have 18 years of  investing experience.

Although you'd encounter the variable rate, why not pursue a line of credit? That way when you find an investment you write the check. Versus with the cash out refinance you start paying on the debt from day one and haven't found your new investment yet...That'll just eat away at your positive cash flow way too early.

Also, try to optimize your operations in the asset you're leveraging the equity on as much as possible before pulling the trigger. Be certain you have properly accounted for capex in your operating expenses as well. You must be prepared if a repair/replacement arises being that it sounds as though you'll be at max usage of your leverage, accessible cash and your cash flow will be washed. (Know your break even point occupancy as well.)

Overall, breaking even isn't bad. You just need to make sure the equity you're utilizing provides a return. Whether that be a lump sum payoff (flip or BRRRR) or if its another buy and hold. Ideally, it'll be the flip or BRRRR so you don't encounter a stopping point where you're waiting on equity to rebuild (before you can invest again).

 Wow, kudos to IRS for being as clear as mud on their website.

Much appreciation to you for taking the time to explain this. Thank you!

So, just updating the operating agreement is sufficient, correct?

@Natalie Kolodij Thanks. I'm aware of the state and federal applications. But I appreciate you explaining them.

So, are you assuming his son never set up an EIN, as to why you're saying a new EIN isn't necessary? 

If so I can see your point, being that this would be the initial filing.

However, I still want to confirm your statement about whether you think a new EIN is required if the EIN was already set up as single member and is now being altered to multi member.

@Natalie Kolodij Thanks for chiming in. Do you mind describing how this is acceptable?

It's very misleading if the IRS website specifically states when a new EIN is required, but isn't.