All Forum Posts by: Eugene Angeloni

Hello BP,

I had this thought the other day and am not sure of its legal issues so I figured I would ask the BP community.

Say I find a house that I am planning on using private equity to purchase and fund the rehab, which lets say is gonna cost in total $90,000.

The house also happens to be in a great location for a rental property.

So as the house comes to completion I now realize that I would like to hold the property rather than sell it. Problem is I do not have $90,000 however my house has now been appraised at lets say $120,000.

Is it possible for me to get a mortgage/refinance the house?

Allowing me to take the $120,000 my house is worth to pay my rehab fees, $90,000, and pay the 10% due on the mortgage, $12,000 and keep the house.

Thus I have a quick profit of $18,000 while still keeping the property and using rental income to pay of my mortgage, thus building longer term wealth.

@Brandon Turner My Next Step...I am not really sure

Currently I am doing research as I feel that at the current time I do not have enough knowledge to go into a rehab feeling confident. At this time I am reading a book by Gary W. Eldred called Investing in Real Estate 7th Edition. Then I plan to read the two books by J Scott on flipping houses. After which I feel that I will be very confident in my abilities to follow through on a flip to sell or a renovation on a rental property.

I feel that my biggest problem is that I am currently a college student with little money to my name and zero credit thus it is my belief that finding the finances to fund a project will be extremely difficult. I do not want to use a hard money lender especially for my first project. I would prefer to find a private investor but who wants to invest in an unproven recent college grad with lets face it no personal experience in the industry.

I know I am smart, I am not afraid to act, and I know that within a year I will be prepared as I can be without having the knowledge gained through actual rehab experience. But how am I supposed to prove I can do this to anyone when I have never done it?

Thank you Simon for your input.

When looking for a flip-to-rent or flip-to-sell what are the key aspects to focus on as I walk through the property?

I understand some of the basics such as:
# of Beds, baths, and condition of both. Closets and there size.

Also understand I should look for water damage and structure damage. But I am new to this and really don't know what to look for in terms of structure damage or other types of damage that tend to suggest other damage that my not be noticeable until demolition day.

Also is it a smart idea to search for properties that can be transformed into more units than originally designed for? Or will I just find myself tied up in paperwork bleeding money as the house sits idle.

For example a single family home that with some creative designing can be turned into a multifamily home or a duplex with the size capability to transform into a triplex.

Thanks BP

@PrashantP. Thank you for your feedback and it make perfect sense that people want to buy near these colleges its a goldmine of student renters.
Where is a good part in the city to look to obtain properties? My initial thought outside of near colleges is places such as Northern Liberties or Old City. I know any house in any location can be a good investment I am just very concerned about potential vacancy issues. Are these areas good investments or again am I going to be looking at competing with a a lot of buyers having to over pay for any property.

Hello BP, my name is Eugene (Geno) Angeloni. I am 22, still in college, but I know that I want to be in Real Estate Investing and am looking forward to spending my life in the industry.

I have read the beginners guide to investing and was pleasantly surprised with the basic knowledge it has given me. What I liked most was that it covered the broad spectrum of REI and that it contained little to no false hopes or tasteless attempts to sell some book. Made me feel confident that the knowledge I can gain through this site is legitimate which is extremely important as I almost gave up hope on finding a real unbiased free option to learn about the industry.

After reading the guide I noticed that the majority of the information is knowledge useful to any REI in any "niche". So for me the key question I believe I must answer as I delve into the industry is: what niche do I want to pursue? I know that the "niche" I am in may change multiple times throughout my career but to start I feel that I should pick one and learn the ins and outs rather than knowing a little about all types of REI options.

Here is what I am thinking…

I would like to focus my energy in the industry on rental properties: duplex, triplex, quads (Apartment buildings seem too problematic also its like putting all my eggs in one basket and single family homes seem difficult to produce monthly positive cash flow with higher potential for long term vacancy). To be more specific I want to do flippers, buying up rental properties that have been "unloved" fix them up (potentially adding an additional unit if possible) then using the rent cash flow to pay back debts and put some walking around money in my pocket as I build wealth. To be even more specific I think I would like to focus more towards student rentals. I am a college student so I understand the damage students can cause however there are two aspects of this option I love. First, although I will likely be dealing with new tenants every year or so I feel confident I will not run into vacancy issues. Second, mommy and daddy must co-sign and are likely taking care of a portion if not the entire rent. I love this because seems safer than dealing with the other renter market, the 23-32 year old recent college grads with little savings and little job security.

The other reason I would like to focus on rehab the rehab units is I want become somewhat of a contractor. Being able to take on some home remodeling jobs once I feel more confident in my and my teams’ ability to produce quality work. I feel as though this is a good way to be multifaceted with potential income options. It’ll allow me to not rely on the rental income and can even use the extra cash to pay back debts faster or invest in true house flipping.

So I have a few questions.

Is this really a good option?

Is dealing with new college tenants each year worth the hassle and potential damages?

Does anyone know any good books on the topic?

Honestly how do I really go about financing this venture with no money, no credit, and no experience?... Without paying an arm and a leg in interest rates

What key aspect of this “niche” do I need to focus on to insure positive cash flow?

Is anybody in the general Philadelphia area looking for extra pair of hands on a rehab project/mentoring?