All Forum Posts by: Jack Perfett

Hello BP! I am underwriting a quadplex right now and I am running into a couple questions that I hope I can get some help on. One being this quad plex consists of a main house (2 units), a cottage, and a large garage that rents at $750 a month. The rents are defiantly low and have to been raised in 5+ years. I am trying to get a understanding of where they should be but a majority of the comps in the area are 1-2 bedroom units in large apartment complexes that have pools, workout facilities, etc. How much higher rent do these amenities warrant if any compared to my property. 

Secondly, the existing tenants have leases that don't expire until 2023,  2024,  and 2025. What should I be concerned about other than not being able to bump rents with tenants that have signed for such an extended amount of time?

Thank you,

-Jack Perfett

Hello BP! I am looking for websites/blogs/email subscriptions/ etc. of the most up to date real estate market data. Does anybody have any suggestions?!

I closed on my first property (househack duplex) in April of this year. The deal was an off market deal brought to me by my agent who had a relationship with the seller. Since I had given my relator very clear criteria as soon as he heard about this property he forwarded it to me right away. I drove from State College to Philly the next day and had it under contract a couple days after that!

Hey Brian, I would assume when they say "I reinvest all my money back in the business" they mean back into real estate. It is completely legal to own a property in your own name. Some people purchase the property under a LLC simply for legal protection. Since you already have a rental property make a simple excel to track all expense. (Expenses vs Income). Let me know if you have any additional questions and I would be happy to help.

Quote from @Colleen F.:

@Jack Perfett  what is the outcome?   were they switched or was the electric just high?

Hello Colleen sorry for the delayed response. So unfortunately it looks like a bigger issue than just the meters being switched. I went and turned the panel off to my unit and both electric meters stayed on. So I’m assuming there is some cross wiring between the panels. Has anybody had this issue before and what am I looking at in terms of getting this corrected?

@Nick Militello have you considered using a co-signer to get the conventional loan? This may be what you need to get qualified for the conventional loan.

Quote from @Jade S.:

Quote from @Jack Perfett:

Matt -  As a project manager in the industrial area we never put AC in a build like this. Look into installing MAU's with louvers to keep air circulation. This should keep the building at a reasonable temp roughly 70 degrees. If that still is not sufficient look into adding Big *** Fans. That's actually what there called lol. Don't know the price difference in comparison to a HVAC system but certainty something worth looking into! Hope this helps

 @Jack Perfett - Following up on your comment. What is the rough cost of installing a MAU in a warehouse type space in the 15,000 sq foot range up to 40,000 sq feet? I also love the idea of the Big A#@ Fans...we have those in one space of a 12,500 flex industrial building that my LLC owns that the tenant will run in the summer. Does a pretty good job, even in the Southeast.

 Hey Jade, I cant give you an exact price but I can give you this. I'm building a 315K warehouse right now and the we need 4 MAU's at about $40,000 a piece. With 15,000 SF you certainly will be able to get away with one and it will be a much smaller and cheaper unit. At the 40,000SF mark you would have to talk to a HVAC guy to see if it would make sense to do 2 smaller units or one medium sized unit.  Hope this helps!

Hey Mark - Congrats on your first property. My mindset has always been continually growing your portfolio! I like the idea of doing a cash out Refi and reinvesting into a bigger or even a couple smaller deals. All of this of course is contingent on if your numbers make sense with the additional property.

Matt -  As a project manager in the industrial area we never put AC in a build like this. Look into installing MAU's with louvers to keep air circulation. This should keep the building at a reasonable temp roughly 70 degrees. If that still is not sufficient look into adding Big *** Fans. That's actually what there called lol. Don't know the price difference in comparison to a HVAC system but certainty something worth looking into! Hope this helps

Hello! Does anybody have any recommendations for a roofer in Montgomery Country area. I need to patch a couple spots on the underside if my roof. Any tips or recommendations would be great!