All Forum Posts by: David Beltz

My wife and I personally purchased a duplex in the Chambersburg, Pennsylvania area last year. We house-hacked while doing an almost complete home renovation in 6 months, moved out, found wonderful tenants to move-in right away, continue to manage the property ourselves, and started up our business as Crystal Clear Properties LLC. We still own the duplex personally, as we have not yet moved it under our LLC; and, we are currently looking at a 7-unit to purchase. Our lawyer recommends creating a new LLC for each property purchase... We like our business name, and so our lawyer suggests that Crystal Clear Properties LLC could act as the property management company since we plan to manage all of our own properties for the time being. My wife and I are asking for others advice on how everyone else structures their business when managing multiple LLC's because we are seeing how things can get complicated very quickly (e.g. separate bank accounts, breaking down expenses, taxes, tracking mileage, etc.). Thank you in advance for taking the time to share your own strategies.

We came back at the sellers with the stipulation that they investigate and fix any issues with this if they want us to buy. We are waiting for their response, but I am fairly certain it will be a no. How do we ensure that the next potential buyers will be aware of this?

It wasn't a severe leak at the moment, and the current tenants had everything from tires to engines and transmissions stored in the basement. There were a variety of smells coming from this place, so it was hard to pinpoint. Here is a snapshot from the inspection report. The inspector describes it as red, as you can see here. The method you use to dispose of an old oil tank was not used in this house. You can tell from the dark colored floor (it is wet, not just a dark floor) that water gets into this room where the oil tank is located. We then followed the wet spots to the sump, which led to our conclusion.

@John Warren this one is in the basement of the house. We were getting the feeling to run, but we are definitely concerned about the issue. How do you recommend we go about that? I almost feel as if they are selling to avoid the problem. I will let them know because I don’t want another investor getting thrown into this without knowing, but I’m not sure they will tell another buyer about the leak.

Hey everyone! My name is David Beltz, and I am starting my real estate investing journey with my girlfriend, Crystal. We are looking in the Chambersburg, PA area for our first property. We’ve been searching the forums for answers to some obstacles we have faced, and it is amazing how helpful everyone is. We are very excited and can’t wait to grow our business and share our experiences with you.

See you guys in the forums!

I am looking at a duplex in Chambersburg, PA that has several major issues. The home inspector noticed the sump in the basement (which is just a chiseled out hole) had still water with an orange tint to it. The current owner’s have the pump unplugged, which seemed strange because there is a problem rain water flowing into the basement. He investigated further and found that the oil tank, while unused, was damp on the bottom and the old oil was leaking out. From there, it seemed that the rain water would carry it to the sump, and the pump, if operational, would empty it into the yard. I am very hesitant to pursue this deal any further, as it will be our first investment property. Digging through the forums, I have found similar issues where underground oil tanks were leaking directly into the ground. There seemed to be a general consensus that the EPA would get involved and this would escalate into a nightmare.

Anyone have any thoughts on the matter?

Thanks!

Just to clarify this post, we have not yet purchased the property. We made an offer on it yesterday, 8/12, and they have to respond by tomorrow evening.

Wish us luck!

Investment Info:

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

Purchase price: $151,995

This 4 unit, 2-story property located in the Chambersburg Borough is a must-see! Situated on an 18,000+ square-foot lot, each unit has 3 bedrooms, 1 bathroom, and washer/dryer hook-ups. Borough utilities are metered separately and paid by tenants. All appliances convey. Tenants mow the lawn and remove snow. $30,000 potential yearly income.

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

There was monthly cashflow at the asking value, but I saw a lot of potential in increasing the value of the property if I could get it at a deal.

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

My mother sent me the property and I met with my agent to view it. I wrote a letter trying to appeal to the seller and made an offer.

How did you finance this deal?

I am using the VA home loan.

How did you add value to the deal?

I will do cosmetic renovations to the property.