All Forum Posts by: Greg Kasmer

@Shay Sherbotseli - I invest in the PHiladelphia suburbs, but mostly in Delaware and Montgomery Counties. I don't really think too much of how my tenants commute into the city. Most of my tenants work locally and typically focus in their town because it's relatively close to where they work. As other suggested the places you mention above are a broad spectrum, so I would first take a look at / underwrite 10-15 properties in each area. You'll likely find that some areas don't cash flow based on their rent amount compared to price points. (i.e. Old 1% rule) I would start there and let that inform your decision making. Assuming you narrow it down to 2-3 areas I would then speak to several property management companies and/or investors to develop you 1-2 target markets. Then, it just becomes a numbers game.... You'll likely need to look at 50-100 properties to find that first deal. Good Luck!

How about "Beyond The Pro Forma" - Hidden expenses and revenues/opportunities as you operate/asset manage a property.... Digging into operations and what changed from the original assumptions.

Micah - I think the loan size mentioned by EJ is real... I would call 10-15 local banks and credit unions and ask to speak to their business banker about business loans in LLCs. They should be able to let you know about their general terms as well as loan size. I have two locally that I can call for that loan amount, but I had to sift through a lot of "Nos" before I found one. Good Luck!

@Glenn Cross - I agree with Jonathan.... I would focus on stablizing your property the best you can and getting it to cash flow as best you can. In the meantime, I would suggest you network within your area with other investors, hard money lenders, and wholesalers and see what others are working on... You may find a partner to get into your next deal OR you could find someone that is scaling with little capital. I think focusing on a BRRR (either SFH or MH) would be beneficial for your next deal. Good Luck!

@Ashley Guerra - I live and invest outside of Philadelphia, so I can't comment on your specific markets in central and south Jersey, but can provide my perspective on things to think about to help your decision.

1) I would consider speaking to 3-5 people/investors in each market you are considering (central and south Jersey) to listen to their thoughts on pros/cons of the area and how they invest. You can get a good feel by speaking with others. If you need help, I would attend SJREIA or whatever equivalent there is in central Jersey as well.

2) I would suggest buying a property (SFH or MH) in a location you can get you within 30 minutes, especially for your first deal. You'll likely need to be there a lot meeting contractors, agents, tenants, so you'll want to be close.

3) SFH vs. MH? Either can work in the long-term, but if I had to do it over again at 23, I would suggest a 2-4 unit that demonstrates the ability to cash flow assuming all units are rented. You'll benefit greater from the appreciation and loan paydown in the long term and in the short term it's not much more to manage a duplex/triplex compared to a single family if you're managing yourself.

In the end, I would give yourself a few months to talk and deliberate, but the best way to get going is to start looking in an area and look at 100 deals in that area. You'll soon get a good feel for what cash flows/works and what doesn't. The more properties you underwrite the smarter you'll be in the area.

Happy to talk further via phone if you'd like. Good Luck!

@Sam Booth - I agree that planning out your CapEx can be difficult. In larger mutlifamily properties I typically increase my existing expenses (non-mortgage expenses) by the same growth rate as my revenue.... assuming I have up to date and accurate existing expenses. Not knowing anything else about the future this keeps your pro forma not overly weighted one way or another. In the reverse, if you increase revenues 3% and expenses 2% you're naturally going to inflate over time. Good Luck!

@Rich Bultema - Just from my experience I have not had an appraiser impact the value for an older heater/air conditioner, however, a heater without A/C (as an example) has impacted an appraisal on a single family home. Good Luck!

@Antonio Maria Farinha - I started out with a condo, but I soon realized that scaling is dependent upon how quickly you can come up with funds for down payments and equity. In my condo deal I did not "drive up" the value of the property with forced appreciation and therefore was not able to get my money back out of the deal, even though that deal cash flows well. So, as Logan mentioned most turn to BRRRR method to continue to scale. To me, you can continue to invest in condos (and scale) if you find a way to force the appreciate/equity in each of your condo deals. Good Luck!

@Tanner Sortillo - I think I would echo some other's comments as well. I would suggest they understand various strategies/methods to invest in real estate and then let that drive their next steps as opposed to the dollar amount they have to invest. So, first question is do they want to be active or passive? If he/she wants to be active, they you have short term, mid-term, and long-term rentals in addition to fix and flips, wholesaling, etc... My suggestion would be to read 1-2 books/articles in each space and then set up conversations with 1-2 investors in each space to truly understand what skill sets, etc... would be needed in each avenue. Good Luck!