All Forum Posts by: Christopher Lombardi

I’ve placed thousands of tenants and never had to evict one that I placed (I’ve had to evict tenants that were inherited when purchasing properties). But I’ve never considered their income. As long as tenants have a great credit history with no missed payments, no eviction history and no criminal history, You won’t have a problem. People with good credit tend to be responsible enough to know what they can afford. Make those three things the most important criteria and you most likely won’t have problems.

A friend just asked me if he should start investing out of state because of how hot the market is by him.   Let me tell you.  I only buy in Class A neighborhoods and I consistently get 25%+ returns per year on my money.  You have to understand that you don't find deals, you create them. 

For Instance, I just closed on a 22 unit, fully occupied apartment building in a Class A neighborhood in NJ. I purchased this for 60 cents on the dollar because the seller already purchased his retirement home in Florida and wanted to close quickly. I called him because I liked the building. Thats it. I didnt wait for something to be sent from a broker, overpriced, or to see it on loopnet. You dont find deals, you have to create them. Find out who owns properties you like and contact them. There are great deals in every market. Most people are too lazy to find them. In 2011 you could buy anything you wanted off the MLS and it was a great deal, but today you have to create the deal. Start sending post cards, cold calling, yellow letters, put signs up in yards. You'll find great returns in any market.

Chris

@Philip Fraccalvieri, you can have him finance the entire down payment if you put the property in an LLC. There are a couple ways to do it. I found credit unions more likely to allow it than banks since they are less regulated so I would start there or with a commercial mortgage broker who knows people at the credit unions. Also, instead of putting it on the property as a 2nd you can put it on the LLC as a mezzanine loan so its not secured by the property but by the LLC itself. This way the bank doesn't need to worry about it.

William Plymouth I like to buy area that I know and that are improving but don't really need a huge amount of improvement. I was in law school at Villanova and Manayunk is where everything goes for nightlife and young people move after college. The numbers also work very well in Manayunk and vacancies are non existent if you have a decent unit. One of my biggest recommendations is learn how to put together a simple financial model in excel. There is a YouTube channel with Spencer Burton that does a great job teaching real estate modeling. Knowing how to value properties is one of the most important things to learn and will save you a ton of money if you learn it before buying anything.

Hey @William Plymouth, I have 2 triplexes a duplex and a single family.   I'm actually in the process of selling all of them and have most under contract.  There is still a triplex available if you or anyone else is interested.  Its at 4519 Baker Street and brings in $3600 a month in rent.  

Thats ridiculous.  I've owned 9 units in Manaunk since 2006 and I never have a day of vacancy.  As soon as one tenant moves out the new tenant takes its place the following day.   There is no way there is 11% vacancy.  

What would you do in this situation? I have a tenant who quietly moved out and moved across country and got a bad credit tenant to sublet in direct violation of his lease agreement. Now I have a guy living in the house for 7 months who I never would have allowed move in, but is current on rent, and a former tenant who pretended to be living there the entire time now demanding his security back. Here is what I think my options are: 1) invoke the hold over tenant clause and try to charge the original tenant double rent because he is technically holding over since his guests are still occupying the home. 2) keep the security for breach of agreement and continuing allowing the other guy to rent as long as he is on time with payments 3) evict the other guy now, who doesn't even have a lease with me, keep the old security deposit, and get a new tenant. Anything I'm missing? What would you do ?

Welcome @Michael Scheerer.  If you have any buyers in the Manayunk area at the moment, I have 3 multifamily properties on Baker, Dupont and Green Lane for sale.     I'm also looking for larger multifamily to purchase in your area near Southampton if you find anyone looking to sell 20+ units there.  Keep me posted.   

Thanks,
Chris

The entire house had to be rebuilt with all new systems. I just finished a 1400 square foot home in Radnor. 32k for kitchen alone, 8k for demo, 12k for new hvac systems, 12k for new electric, 14k for new mainline piping, 6k for other plumbing, 8k flooring, roofing, Sheetrock, painting, trim, bathroom, landscaping... I went higher end than you need to here but still, these things aren't as cheap as the tv shows pretend.

Your numbers are way off. I build and renovate in Radnor and have 9 units under construction/ renovation right now in town. I looked at this deal and it makes no sense. The property location is terrible and probably the worst in town. It's on the corner of two busy streets with a train line in the backyard and a bridge over top as well as power lines. And the renovation cost would be $150k minimum. 35k might get you a new kitchen but that's about it. And that's if the house doesn't need to be knocked down. Once renovated it may be worth 250k but even that would be a tough sell given the location. No one with kids would ever buy it. Students wouldn't be able to legally rent it. The only person who may be interested is someone with a little money who wants a Radnor address just to send there kids to the local schools but doesn't plan on spending much time there. Even then they would probably be better off just renting a small apartment.