All Forum Posts by: Candace Ly

Hello BP! I had two questions regarding a newly listed duplex in Philly. Thanks.

1. It's a turnkey completely newly renovated duplex. I was on L&I and saw that no permits were pulled for renovation/construction. They did have a permit for some electrical work and roof replacement, but not for the renovation SOW. Was the renovation "illegal" then? If so, is there anything that can screw me over?

2. The listing says it's a duplex and I see in pictures that were are 2 electrical meters. It is currently zoned as RSA-3. How can I confirm that this place has a proper variance in place to be a legal duplex? I looked through the zoning permit documents and saw a proposal to become a duplex dated back in 1958. It also looks like the old rental license in 2014 was for a duplex. It states this below.

@Eric Samuels @Bryan P. @Bradley Rieger Thank you for the comments! Would love to connect with you all for sure. 

Thank you @Mike Mosby and @Michael K Gallagher for responding! I do plan on reading the BRRRR sometime soon, just haven't gotten there yet. Not sure if I'm misreading everything, but Michael G. said one thing but Mike M. said another.

From my understanding, Michael G. is saying my refinance loan amount will only be $75k but Mike M. is stating the loan amount is the full $300k. 

@Julio Gonzalez and @Justin Windham Thank you! Very excited to be a part of this community. Thanks for the tip.

 @Chace Fraser thank you for the warm welcome and tips!

@John Knisely sounds like a plan! Will shoot a message to you.

Hello BP! I only just started my RE journey and have been listening to podcasts and reading. I am still pretty confused on how the BRRRR method works when it gets down to the nitty-gritty. If I purchase a property, rehab, and then refinance, won't the mortgage be higher and my monthly payments are higher? If the bank gets me a 75% LTV, I wouldn't have any more equity and will have a loan amount for the full 75% of my property's ARV value?? Could someone break down a hypothetical situation for me with numbers (see below)?

I don't have enough cash on hand to purchase a property in full, but I do have family members that could lend me the full amount/construction costs. I am also unsure how private money agreements are typically handled. Does the lender make money off of interest or at the end of the refi I give them a portion of profit? 

• Purchase price: $100,000
• Renovation cost: $50,000
• Cash borrowed from lender: $150,000
• Gets appraised for: $300,000
• Refinance for 75% of LTV: $225,000
• Monthly mortgage: ???
• Equity: ???
• Profit: $75,000(??) but not really since I would have been paying the lender interest?

If someone can explain to me clearly, I would really appreciate the help!! I'm struggling to understand the calculations. 

Hello BP! I am excited to start my RE journey and hope to purchase my first property this year. I am currently renting in Brewerytown, but looking to house hack and purchase a duplex/multifamily in the Philadelphia/Philly Suburbs area. The areas I am looking at are Overbrook, Drexel Hill, Bala Cynwyd, Upper Darby, and Roxborough (open to more suggestions!). I am looking to avoid North/NE/East area of Philly due to my job location.

I am very eager to learn and absorb as much as possible. Looking forward to connect with any Philly investors and the BP community. Thank you!!

Hello BP! I am excited to start my RE journey and hope to purchase my first property this year. I am currently renting in Brewerytown, but looking to house hack and purchase a duplex/multifamily in the Philadelphia/Philly Suburbs area. The areas I am looking at are Overbrook, Drexel Hill, Bala Cynwyd, Upper Darby, and Roxborough (open to more suggestions!). I am looking to avoid North/NE/East area of Philly due to my job location.

I am very eager to learn and absorb as much as possible. Looking forward to connect with any Philly investors and the BP community. Thank you!!