All Forum Posts by: Efi Shabtai

How about Weds?

Hi April! I'm interested. Is it possible for me to walk through the property? Any idea of the condition? I'm assuming it needs a lot of work. 

@Mauricio Botero I'm just trying to be conservative. I don't really have the right answer of should it be 5% or 10%, but figure why not reserve more in the beginning to be safe. For this particular property, the area is less desirable than a Port Richmond or Fishtown so perhaps it will sit vacant longer or maybe I'll see higher turnover than in a more desirable area. I'm just not that sure at the moment so I'm trying to mitigate my risk going into the deal. I also have rentals in Gray's Ferry and Point Breeze and I still assume 10% vacancy on those as well.  

Hey @Sophia Bouss I found this one on the MLS.

@Joe White The house is structurally sound. Same owner since 1967 so it needs a new kitchen and bath, which will have rental grade finish. New boiler, new water heater, carpets on 2nd floor and refinish the original wood floors on the 1st floor, patch and paint throughout. Hopefully we can stick to 25K! 

@Joseph Scorese Thanks for the feedback. I'm going private pay on this one. What do you mean by it all depends on whether sec 8 or regular tenant?  Thanks again!

Hello BPers, 

I have a property under contract in West Philadelphia (Carroll Park 19131) and was hoping to get your opinion on this deal. Any West Philly investors willing to give their input?

This is a 4/1 1200sf SFH on Allison st between W. Master & West Thompson that I will BRRR.

In a nutshell, I'm at the 1.6% rule and 22% Cash on Cash.    

Any thoughts on the area? Would you not buy in this area because of the crime rate or any other factor(s)?  Does anyone have rentals in the immediate area that have done well or not so well? How is it dealing with tenants? For me, this is more of a cash flow play than appreciation - the numbers seem to work, but I want to make sure the "headache factor" is reasonable here versus the return.       

Purchase Price: $28K 

Rehab Cost: $25K Mainly cosmetic rehab major pieced are: gut/redo the kithchen and bathroom and install new systems, refinish existing hardwood floors

Holding Costs: $5K

ARV: $70K

Using a HELOC to purchase and rehab @5% interest

Closing Costs $2K

Refi into a 30yr fixed mortgage @5% interest with a 75% LTV

Refi Costs: $2.5K

Gross Rent: $950/month

PITI: $430/month

Maintenance: 5%

Capex: 12.5%

Management: 8%

Vacancy: 10%

Any input would be greatly appreciated. Thanks!

I will be there. My first one. Looking forward to it. 

Hi Vala and welcome. I'm new to BP and investing in RE. Always nice to see a fellow Santa Monica dweller and basketball fan to boot! I've been using the keywords to help network. For example, you can put something like "Los Angeles" to see if there are any posters in LA that you would like to connect with.

All the best,

Efi 

P.S. A K-Love trade might just be the next thing to take your ROI to another level ;)

Thanks Will! That's nice insight. The specific markets I would be most interested in are Indianapolis, Georgia, Dallas, Richmond and Columbus, OH.