All Forum Posts by: Bryan Okolo

@Bryan Okolo This is basically a sub-leasing situation. Lots of companies were offering this pre-covid. Many didn't do well and changed their agreements unilaterally midstream to the detriment of the property owner.

Search the forums for others experience on this topic.

Could you go more in depth with this. Why was the agreements changed. What would be the main cause of this contract not going well?

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Has anyone encountered a business looking to rent a property from a single family property owner. The business is looking to do short term rentals (for traveling nurses and business professionals), but will sign a long term lease with me (single family property owner). I will not have to deal with any of the short term tenants, only the business that will be on the lease. Is someone has done this before, could you give me some insight on if this is legal and also would you recommend this?

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Originally posted by @Lana Lee:

Originally posted by @Bryan Okolo:

Originally posted by @Lana Lee:

Originally posted by @Adam Zell:

My properties are in N. Philly so different neighborhood, but I have friends who bought a home in that area. Haven't done a lot of digging into the rents in that neighborhood, but I looked through the Zillow posted rents and thought $1400 looked reasonable

I see on hotpads some 3 br town houses starting at $1.125. But then there are also 1br appartments at about $1.500. Rentometor is not the way to go. You should really go through the listings checking out street addresses and pictures to make accurate comparison. What is your estimated PITI? I would imagine it's pretty high since you only putting down 3.5? And what FHA rate is being promised to you?

My fha morgage is only 1100 right now. But also, how is North philly with multifamily homes. This is my first investment and I dont 100% know which area to go for.I kept doing all of this research but feel like i getting know where. I just want to house hack a multifamily for my first investment to get me started.

Is $1100 includes mortgage insurance ? I personally like. NE Philadelphia although multifamily is pretty expensive there. But with your ability to use FHA could be doable.

How is appreciation in the NE Philadelphia area

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Originally posted by @Lana Lee:

Originally posted by @Adam Zell:

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Originally posted by @Adam Zell:

I live in the area and have 3 rentals and closing on #4 in Philly. Rent really depends on the neighborhood and even block by block, especially for these up and coming spots. I've been able to extract a slight premium over the competitors in my area because the properties all brand new gut renovations with nice finishes.

Go to Zillow or Craigslist and see what the other units are rented for on your block. And adjust your expected rent up or down based on the quality of the finishes. At first glance, your numbers seem plausible but Point Breeze is a big place and tends to have lower rents the farther south you go.

Hey Adam, do your have multifamily in this area. The property I am dealing with is brand new also, but it seems like it may be in a difficult place to rent. could you give me a little insight on how tough or easy it is to gain tenants?

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Originally posted by @Neel Patel:

Originally posted by @Bryan Okolo:

Originally posted by @Neel Patel:

You can make the assumption that about 50% of your rent will go to expenses (10% property management, 10% repairs, 10% vacancy, 10% CapEx, insurance plus $150 for taxes). Assuming you have no rehab costs, in Year 1 you will have about $600-$700. Your loan payment I assume will probably be around $1,088 (5% rate and 30-years) so you will have to cover some of the payment out of pocket.

Year 2, you should have around $1300 after expenses and after paying mortgage, you should be left with around $200 profit. 7% cap rate and 15% cash on cash. I'd say that's pretty good. Your numbers change if you have any rehab dollars going into the property.

I'm still new to this so don't take my numbers as truth. Everyone runs their numbers differently.

Are you currently working with multifamily in philadelphia too? I also wanted to know how many expenses I could put on the tenants, like water, electric, etc.

Yes, I am. Normally, all utilities (electric, gas, water, etc) are paid for by the tenant. I have seen some landlords cover water but I believe that is because the property may only have one water meter (don't quote me on this).

Hey Neel, I was wondering if you had any good area I could house hack a multifamily unit for about 200,000?

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Originally posted by @Adam Zell:

$1400 seems like a reasonable assumption depending on how far south and west you are in Point Breeze. You might have to hustle for tenants because there are a lot of brand new units coming on line in that neighborhood.

I'm assuming your tax #s are with the abatement?

are you familiar with the philadelphia area and multifamily. I am trying to find the best area for me to invest in for the first time. also while doing house hacking.

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Originally posted by @Lee Ripma:

@Bryan Okolo It’s hard to know with the info here. Have you tried running it in the BP calculators? Is it turnkey or does it need some rehab? Don’t forget to account for capex, vacancy, water bills, etc!

It is not turnkey, but also needs no rehab. It is move in ready with no tenants.

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Originally posted by @Neel Patel:

Originally posted by @Bryan Okolo:

Originally posted by @Neel Patel:

I'm still new to this so don't take my numbers as truth. Everyone runs their numbers differently.

Are you currently working with multifamily in philadelphia too? I also wanted to know how many expenses I could put on the tenants, like water, electric, etc.

Okay thank you, also do you have any suggestions as to where in philadelphia I should invest for multifamily?

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Originally posted by @Lana Lee:

Originally posted by @Bryan Okolo:

Hello, I have a potential deal I'm about to close on in Philadelphia PA. It is a multifamily duplex in point breeze area for $210,000. The taxes on this property is about $1,800 a year. I would live in one unit, while renting the second unit for $1,400. After 1 year I could rent my unit for $1,200 bringing in $2,600 a month. I would obtain this property by using an fha loan with only 3.5% down. Would this be a good deal to move forward with. I am also a first time investor looking to house hack.

Is it a 3br. unit for $1400? Sound kind of expensive, besides the competition for rent is huge.

They are very spacious 2 bedroom units in the point breeze area. They are brand new units that have just been rehabed. Is 1400 asking too much for rent in this area? I just used rentometer to find the general rent in that area, and that is what I came up with.

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All Forum Posts by: Bryan Okolo

Bryan Okolo has started 3 posts and replied 15 times.

Post: corporate rentals with single family property owner

Post: corporate rentals with single family property owner

Post: Potential multifamily purchase

Post: Potential multifamily purchase

Post: Potential multifamily purchase

Post: Potential multifamily purchase

Post: Potential multifamily purchase

Post: Potential multifamily purchase

Post: Potential multifamily purchase

Post: Potential multifamily purchase