All Forum Posts by: Christian Beyer

@Emma Fitzgibbon

Are you talking specifically about single family? Yes anything under 100K worth buying is getting bought up by either investors or home buyers.

For a multi what I'm targeting is 60K a unit, anything in that range is a money maker and they still appear on MLS. I just saw a 3 unit go under contract listed at 150K and I just put a contract on a 6 unit at 360K so they are out there.

Plan to pay more in Bethlehem and Easton but potentially get better tenants. Allentown is my choice right now as I have a strong PM firm that rents and manages really well, so the deals we get are maximized.

I also don't really agree that there are no deals on the MLS. I've purchased 3 deals off the MLS in the last 1.5 years and as long as they are listed around $60K per unit and aren't a tear down you can do fine. I just refinanced out of my first purchase at $88K per unit fixed up and rented so the value is definitely there. The competition is fierce for a reason.

@Rebecca Rummelt

Talk to @Ronald Bowser

@Christian Beyer

Alright guys- I know I said that was the final follow up but there was more to offer on this one!

So after reaching steady state cash flow as described in my previous post, I went back to my lender looking to refinance after I saw a few triplexes going for good prices once fixed up. Happy to say that our refinance was completed yesterday after the property appraised for $265K!! We were able to cash out $50K of our original investment and just made an offer on a property yesterday with that cash as the primary down payment.

In a less happy but still optimistic note- we also ended up filing the lawsuit for fraud against the original seller as the final charges for code violations that were not disclosed came out to around $38K. The lawyer charged $3,500 up front and it looks like we have a good chance at recouping some of that invested cash.... as it turns out the seller was actually a commercial broker so that looks even worse for him as he should have known to disclose those code violations. If we get some or all of that back it will be the icing on the cake of this deal which is looking more and more like a great deal.

In the past few months I’ve brought 2 other investors on board and made offers/closed on some 6 unit properties as 50/50 partners, hopefully with more good luck (and less drama).

I promise this is the last update on this one (until I hear from the lawyers)- good luck to the rest of you Lehigh Valley investors!

@Ray T.

Yes! Still haven’t seen the property.... finally broke the habit of needing to go see it. Even if the deal wasn’t smooth it was a proof of concept and I paid for my education.

We are closing on our second deal on Monday, a good value add 6 unit a few blocks away. Another one site unseen, just signed power of attorney over for the closing at a notary off of Baker St!

I’m moving back next summer so I’ll probably be doing more neighborhood and street by street analysis to maximize the deal potential but going to try to avoid visiting actual potential properties (treat it like a business).

@James Perdomo

Empire PM

@Ray T.

I’m actually on an overseas assignment now in London, but my long term residence is in Phoenixville. The reason I made the move to invest outside of my town was because it would force me to treat it like a business and find a proper PM instead of dealing with handymen and call outs etc. I chose something that was still driveable and had growing population and employment.

The PM debate will happen forever because there are so many bad ones out there. I found one through BP, interviewed them, and worked out the first deal. They have all their title, management, and construction in house. They are worth their weight in gold.

They actually specialize in smaller multi family in the Lehigh Valley so their business is built around the model. Find a good one and they make life much easier!

CB

@Ray T.

Hey Ray,

I’ve been investigating the LHV as an investment location for a few years- and dipped my toe in last August with a 3 unit near the NIZ on W. Turner. We ran into a bunch of permitting issues from the previous owner so if I can give some advice look for properties that already have a clear CO from the city if you can find it.

Tenants are typically blue collar and many of them are recently employed by the recent boom in logistics and warehousing that is going on in the area (link below to a video I saw on Twitter that actually calls out Eastern PA warehousing as a desirable investment).

There’s definitely a decent amount of investment going on and I’ve seen prices jump even in the past few years so competition is growing as people catch on.

https://youtu.be/Yvi4MPHcwj0

@Wendell Fong

I would double down on this post- there are too few skilled laborers out there so finding a job shouldn’t be hard. Learning from the trades will make your estimating faster and more accurate and when you hire your own contractors you can dictate to them a fair price instead of the other way around.

It is also a great idea to start by getting a job and saving money for your first project. You can get a license and read in your spare time (emphasis on the side HUSTLE).

You’re on the right track- good for you!

Christian

@Mark Boukhaled

Hey Mark- my experience with this would say that you should look 3-5 years down the road and see what the situation looks like.

I purchased a duplex as a house hack for my first home in 2014 and the second unit was rented for $650 when my mortgage was $1,650. Obviously wasn’t making any money there. Fast forward 5 years I renovated my unit, rented it for $1,325, moved into the other one, renovated it, rented it for $1,200, and moved out. Last year I refinanced into a 15 year mortgage for a monthly payment of $1,950 while bringing in $2,525. Not great on cash flow currently, but it is building equity faster while I am not relying on the cash flow since I still have a job.

Don’t downplay that quality of life point you made- if you’re unhappy there’s no point anyway. Keep the long play in mind and good luck!

Christian