All Forum Posts by: Chris Gordon

@Savannah Lewison I think what you have to consider is that MT Lebo taxes are very high, even by county standards. It's a relatively affluent area but rents are not going to be high enough to offset your PITI to that extent. I think expecting to pay 600-700 is probably reasonable in this case

These posts motivate me, thanks! Sometimes conversations with other investors or even BP podcasts highlight for me that I ideally should have started earlier.

I started when I was just about turning 39, I'm 40 now. 

4 doors, one barely profitable (hahah) rehab, but I'm getting it done.

Keep moving.

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Are there turnkey companies in Philadelphia?

So I grew up in Philly but haven't lived there since I graduated college. I visit a few times a year to see family and friends. 

I'd love to get out of my own market, and maybe have a small tax deduction whenever I visit. I'm not yet at the BRRR-at-a-distance point just yet.

Any recommendations?

Yes, as 

@Phil Anderson , points out returns need to be indexed against inflation.

My Dad bought some bonds for me when I was very young. I cashed them in. They made money, sure. However when I deducted taxes and adjusted for inflation they actually lost money....WTF

I think there are definitely properties that will barely appreciate...but I think neighborhoods that people want to live in will at least keep up with the cost of inflation of construction materials...at least. Not to mention the tax treatment. 

I would not buy this. 

Try what I do instead: figure out your known & assumed expenses, then what you want out of the deal monthly as far as cashflow, and back into what you can offer.

So for instance, start with your rent (1450).

Minus your desired cashflow first. Don't budge on this!

then minus your taxes, insurance, vacancy, etc etc.... everything except your Principal and Interest (loan cost).

After you do all that subtraction, what you have left is what you have to service the loan (let's say $350)

You can use Excel's PV function to figure out what your offer looks like.

Using 5.5% interest rate (expressed as .055/12), over 30 years (360 months or "periods"), and with $350 month gives you an offer of 61,642.62.

We've compiled and vetted a list of duplexes (about 75) that meet all our criteria and which we'd consider being occupant-owners of.

Planned next step is to send them letters stating who we are, what we're trying to do, and letting them know we'd be interested if they'd like to sell.

Any experience or suggestions for how to format (handwrite vs typed, etc) and what points to highlight? Current plan is to handwrite the address and type the letter. I'll have my wife "write" the letter as I think that will be better received, and specify that we're looking to move closer to a certain location, the school district, etc, as well as that we'd pay fair market value and can take on repairs, etc.

Opinions? 

This was outstanding...definitely required a relisten to fully grasp.

Here's the real pivot-point question: do you enjoy it?

I actually enjoy painting, tile work, etc. I don't see anything wrong with people doing their own work if 1) They enjoy it

2) They are choosing to do it over other possible activities.

I need to reevaluate Dormont and Beechview. My impression had been the rents were about 100-200 less