All Forum Posts by: Dan Powers

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $180,000
Cash invested: $225,000

This was a very rare opportunity to build a triplex while also having a curb cut for off street parking. With the lot having 30 ft. of frontage this is going to be a super unique house when all said and done.

What made you interested in investing in this type of deal?

What made my investor interested in this deal was the opportunity to build a multi in the heart of Brewerytown. This property was very unique as it came with an attached garage & curb cut which will increase value tremendously. With comps for triplex's in the area easily hitting 800k+ this was a no brainer for my investor.

How did you find this deal and how did you negotiate it?

This deal was sourced through New Western Acquisitions and was sold on a first come first serve basis.

How did you finance this deal?

This deal was purchased with cash.

How did you add value to the deal?

Value is being added to this property by tearing down the existing structure and rebuilding a brand new 2500+ sqft (including basement) triplex with a garage and square footage above the garage structure, and yard behind the garage.

What was the outcome?

While this project is extremely time and money intensive its going to be a cash flowing machine and once refinanced out, my investor will have pulled all their money out and this will fund their portfolio growth for the future.

Lessons learned? Challenges?

Honestly the biggest challenge was deciding what to do with the lot square footage. My investor had so many ideas of what he could do with all the space from multiple garages, to adding a 4th unit, he was very excited to take on this project.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Dan Powers - New Western Acquisitions

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $109,000
Cash invested: $62,000

This clean West Philly property was my investors first property in the Philly market (she has other properties in other markets). The bones of this property were in good shape, with solid mechanicals, my investor is doing a complete overhaul of the cosmetic items to make this a nice high end rental.

What made you interested in investing in this type of deal?

What made my investor interested in this deal was the condition of the mechanicals and the rent potential of the area.

How did you find this deal and how did you negotiate it?

This deal was sourced through New Western Acquisitions and was bought on a first come first serve basis.

How did you finance this deal?

This deal was financed through Sherman Bridge Lending.

How did you add value to the deal?

Value is being added to this deal by redoing all the cosmetic items to the property.

What was the outcome?

The outcome is going to be a fantastic rental property that is going to cashflow 350/month at market rent and should refi around the 190-200k range

Lessons learned? Challenges?

The only challenge was getting a contractor bid at a reasonable number in a timely manner for my investor. Otherwise, this was a smooth closing.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Dan Powers - New Western Acquisitions

@Daniel Scruggs When converting from SFH to duplex you would not normally have to install a sprinkler system, the main condition which would require you is if you trigger a new construction permit. I believe to trigger that permit you need to change 80% of the structure.

@San You I agree with @Nathan Gesner first get a real estate attorney and get ready to begin this process, the quicker you start it the quicker it will be over. Definitely sounds like you should get a new PM as well since you had to discover this major issue on your own. I would recommend @Sean Watson with Rentwell, they manage a few hundred doors in the Delco/west philly areas and plenty of my investors have had great experiences with them.

@Patricia E. Welcome to the Philly market, Point Breeze and Newbold are great neighborhoods, Grays Ferry can be great but you don't want to go too far west as it can get interesting on some blocks. Anything in Fairmount or Brewerytown is great those areas are booming. My best recommendation would be to drive the blocks.

@Ben Carlson An issue that might seem like a simple one is access. To drive from Philly or any surrounding area to Norristown you have to take backroads, it's not easily accessible. Obviously, you could go back further to the downfall of heavy industry, but with plans in place for redevelopment along the riverfront (https://www.norristown.org/424...) there is a ton of money being thrown at the area.

@Ley Nezifort Wow that's great you're able to get guts done at those prices, you really must be able to compete!

@Forrest Hayashi First off if you're able to find inventory in University City that does make sense price-wise certainly scoop it up. Yes, it is legal to rent 6 rooms under 1 lease as that's simply a 6-bed rental. You cannot rent the 6 rooms and have 6 different leases, that's renting my the room and is illegal. The zoning only comes into play if you wanted to convert the property to a duplex/triplex/quad. Students aren't typically looking for housing mid-semester, especially something of that size, but you never know its Ucity. Not sure if the purchase is as is, or inspection based, as long as there's no structural damage and the title will be clear that's the main things I look for.

Hey @Conor Coyle I have a few contacts I can put you in touch with that specialize in those scenarios. I'll PM you

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $550,000
Cash invested: $120,000

Chester package of 6 different addresses for a total of 12 units. Consists of 4 duplexes, 1 triplex, and a 3 bed 1 bath twin. The total current rent is just over $8,000/mo, with the potential to push that to 11k+ once all units are paying market rent. Most of the units just needed a cosmetic update to bring them back to life.

What made you interested in investing in this type of deal?

What made my investor interested in this deal was the condition of the units and the cash flow potential. With most of the units being occupied, they were in decent shape already and only needed cosmetics (kitchen, bath, paint, carpets). Next, the cash flow, as it was already bringing in 8k as it sat, the rent in this pocket with this many units could top 11k.

How did you find this deal and how did you negotiate it?

This deal was sourced through New Western Acquisitions and was sold as a 48 hr highest + best. The starting bid was at 495k and I instructed my buyer to place a bid at 550k because that is what I knew it would take for him to win given there were many other bids for this package.

How did you finance this deal?

This deal was financed through a private lender contact I provided.

How did you add value to the deal?

Value in each house is being added by redoing the cosmetics in each property. Kitchen, bath, paint, carpet.

What was the outcome?

While this project will take a while to turn around all the units, the outcome is going to be a fantastic cash-flowing property.

Lessons learned? Challenges?

The only challenge was waiting for title to clear on all the properties, other than that it was smooth sailing.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Dan Powers - New Western Acquisitions