All Forum Posts by: Douglas Gratz

Hello friends! I am currently in the market for a good portfolio lender. Does anyone know of any good lenders possibly around Philadelphia area? Or any portfolio lenders even if out of state so long as they work around the country ? Any help pointing me in the right direction would be so appreciated! Thank you

@Jeff Brower amazing post. The information was so useful and nicely laid out.  Most people do not have enough detail with the numbers.  Can I ask a question , what’s the county auditors website have on it. At first I thought forclosures but then you said the owner was going to put the house in the market but she got your letter just in time. So what are you finding on the county auditors website that shows you sellers that havnt put the house on the market yet? I think my question was answered above actually. So these are just properties zoned 2-3 units and you mailed the owners just Incase they were thinking of selling?  thank you! Also do you know how I can address this stuff from my county , Montgomery county PA?

Hello, so I am looking to invest in Philadelphia but am having trouble figuring out what I could get for rent. Per the Section 8 map, they say they pay $900 for a 1 bedroom and $1090 for 2 beds and so on in most zip codes. I am looking to invest in fishtown, germantown, Kensington, west philly, and south philly. Generally in neighborhoods that have not seen a boom in development. The problem is, from all my research I only see much lower rent rates such as $700 and $900 respectively . Do these houses only rent for top dollar if they are newly renovated . Does anyone have experiences in philly and if so, what are you getting for rents? Any help would be greatly appreciated!

@Palal Mishra I’m not sure I understood what you just said. Butcny mortgage payment is 922 and includes taxes and insurance

@Andrew K. yeah I set aside 10% a month from rent for maintenance , I do not have capex in my sheet because s it’s all brand new inside so I don’t plant on having to dish out money until warranties expire.

But yeah I put all my expenses in , from the guy who leases my places , gets 1 month, I make that a monthly expense , I set a side 10% for maintenance , I set $25 a month for extermination and so on....I list it all expenses and I reinvest a portion of my cash flow for vacancy reserves

Where do I find that @Amanda G.

@Adam Kennedy Before I go into if it’s a good deal, let me ask, what is your goal or what are your Investment goals? Are you trying to make money from appreciation, are you trying to use rental income to subsidize your current income, etc, what is your end game/what do you want to accomplish as you invest in real estate?

I'd like to see what other people's investments look like! Location , price, cash flows, CoC?

Hello friends! I'd like to start a discussion on where people are buying, how much they are spending , and what are their CoC returns? I don't see many topics that discuss this so I figured I would start it. I was hoping to see what other investors are doing and compare it to my market it PA. Maybe help people see what markets may be good to invest in. So everyone, would you mind sharing some of your investments. Where are you currently buying, why are you buying there, what are your cash flows and what returns are you seeing? Can't wait to hear back, thanks!

I paid all cash then refinanced , for the duplex of the 87k put in I got 77k back. My CoC is 72%...Where I am buying in Norristown PA, there is not much appreciation . In up and coming neighborhoods in Philly you can get some good appreciation like brewery town, northern liberties , sharswood, fishtown , Kensington (some parts )

Originally posted by @Joe Villeneuve:

Originally posted by @Douglas Gratz:

@Joe Villeneuve I am a little lost on your last comment. I did pay all cash upfront. So I bought them at auction and then rehabbed them. To use the duplex I spent 87k to do all that, after refi, the bank gave me 77k . After paying all expenses each month I can pockets 600/month . So my CoC is 72% . You said above I am analizing this wrong, do you still stand by that or were you confused with my explanation ?

My comment doesn't change based on the following math: You put up $87k in cash, the bank gave you back $77k, so you have only $10k in the deal.

What did you mean when you said “When you are looking for cash flow, the total cost of the property (buy, interest, rehab, etc...) isn't equal to the total cost to you.”

 My Let me answer this with a question of my own.  "How much did this property cost you...so far"?

To use the duplex for this, I spent 87k and it’s all done and is rented out , we aren’t including my monthly expenses when you asked me I’m assuming.