All Forum Posts by: Neil Schoepp

Kaden I applaud you looking at properties at 20. Good for you.

I would build my buying criteria BEFORE I look at properties. In doing so you can take the emotion out of it. For example I look for 12 to 75 doors 1960 or newer more two bdrms then one bedrooms 10-15% up side in rents, NOT in a flood plain and in a "safe" area. 

Now you may not hit every one of those but that's a starting point. For me flood zones are a deal breaker. Flood insurance can change year to year and it's just to much of an unknown for me. Next is the rent upside I need be able to push rents or lower expense's in order to hit my return metrics.

I would caution leaving 500 a month on the table. That's 6,000 annually and at a mere 10 cap you are talking about 60,000 and at a 7 cap it's 85,000 in value you are leaving on the table so it's not 500 it's 60 to 85K. Also keep in mind that when things go sideways you are going to potentially need that 500 a month in cashflow.  

They are correct it's not the landlord that should be talking to the police as you are not the complainant. The tenant is the complainant and if a firearm was brandished AND the tenant feared for his life at minimum you have menacing (at least in NY). Mail is the easiest way of finding out the name. I would also go direct to Section 8 not sure if it would work or not but is worth a try. I Love Dennis's solution. You need to fix this NOW or you need to sell the property. The next tenant is likely to have the same problem. Good on you for moving the present tenant. 

https://www.legis.state.pa.us/...

That covers the state. Philly will most likely have their own rules. Check with landlord tenant court for the area you are looking at investing in. 

https://www.rustlawllc.net/

Is based in Allentown that's the closest I can get to you. They may do Philly or may be able to refer you to someone. 

So it's that time sensitive that it can't wait one day? 

No I wouldn't. I run a business, one that provides housing. If I was interested in loaning money out I would become a private lender or a bank. 

@Jose Marie Fortuna what type of properties are you looking to invest in? I Invest in MF up to 75 doors in and around the Norfolk area. 

Corey, When I'm looking to visit a new area I always build relationships with Property management and brokers BEFORE arriving and in that order. I will then set up appointments with them to walk a few properties they are managing. With brokers I want to walk as many properties as I possible can. There is no better way to learn a market then hands on. 

Then I'm looking to build relationships with lenders and contractors. I would meet with three lenders and ask if you could show up on a jobsite of the contractor. No better thing then to see the quality of work under the finished product and to see him in his environment. Ask EVERYONE for referrals. The broker for lenders and PM's, The PM's for contractors and brokers, The contractors for brokers and PM's you get the idea. 

Don't sell short just driving. Look at the quality of the area. Are there mopes hanging out on corners, are there mattresses in the street? What type of store fronts are there? Are the streets and sidewalks maintained? Are the curbs crumbling? Is there graffitti on the bldgs? Are there Iron security bars over the first floor windows? Barb wire on the fencing of residential properties? 

Get out and walk around. Talk to everyone you can. The mailman is the best choice here. He has deep knowledge of the area and knows where properties are that aren't on any map. UPS, Fed-Ex, PD and FD. Stop and grab a coffee in the morning and a hero for lunch. Talk to the sandwich shop owner and random patrons. People love to talk. When walking around see if you can find the mayor. That person that waves to everyone and just sits and watches everything going on. 

This will get you moving in the correct direction. If I can help in any other way please feel free to reach out.

P.S Make sure you study flood maps. Flood insurance can creep up on you and BAM once a deal is now not a deal.

Nicole, This is great to see and in a year of such uncertainty. Closing in 2020 just means nothing can stop you. Congrats

Congrats on making a commitment. Now it's all about taking tiny consistent steps each day towards that.

House Hacking is a great way to offset your cost, and get you feet wet sort of speak. Just make sure that when you work the numbers it will cash flow when you eventually move out. So underwrite it with 10% property management and all the cost you may absorbing yourself. A great example is if you are mowing the lawn then move out and have some one else do it or if you decide to hire a property manager after you move out can the property afford that. Insurance will increase slightly because it is now not owner occupied, etc.

Commercial property can be "house hacked" also so don't limit yourself to just a SFR. Think an apartment above a storefront or office.

As far as sub markets go I would research those that values have had consistent steady growth over the last 10 yrs. I would also look to see how quickly they bounced back after the 2008 crash. 

Cash Flow is the life blood of your business. So that to me it's the number one criteria. 

The last thing I will mention is not sure what you mean by NY (state, city, long Island, etc) There is a mass exodus from urban to suburban, this is country wide not just NY but lots of people for numerous reason are leaving the state. 

I always start with where the tax bill is being mailed to. Sounds like here the bill is being mailed to the vacant address. So I then hit google to see if I can match the name with the vacant address and see where that leads me. sometimes it will populate with other names and locations. I then track down each name and start to build a file. Keep at it long enough and something should pop. Although the older the individual the less digital footprint they will have. Death records, obituaries, and even gravestones will leave clues. 

When all else fails keep it on your radar and wait for the tax sales. 

One last thought. I've seen banks pay taxes just to protect their investment but do nothing with the property so researching if it has a mortgage may be another way of going about it. 

Every Jurisdiction does it slightly different. Asses value is just a number the county comes up with to apply their mill rate (dollars per thousand of value). To make it more complicated every county has different valuation processes and different equations to figure the taxes. 

The good news is I've never called an assessor office and they blew me off. They are all very patient and helpful. Just find a property for sale and record the address then give them a call and let them know you are looking to buy the property and need to understand how the taxes are computed. They will walk you through it.