All Forum Posts by: Jeannette C

Hi Robert, first, it may be sitting because the numbers really dont work, despite the initial appearance. Do your own reno calculations, find out the twp/city fees/expenses and process, and be sure to factor in vacancy, taxes, insurance, yearly repairs, capital improvements, fees, actual interest rate and monthly pymnt, any LL utilities, etc - the stuff that is easy to overlook. Also, expect to accept voucher programs and know what they will pay; they have set standards. 

Secondly I have several rentals in higher crime areas. They're typically harder to rent and its harder to find qualified tenants -although well worth it.  I'm a good LL, and I'll hold out to find a good tenant whom I believe will take care of my property and stay for years to come. 

One home, in a new area for me, I literally showed for several months to over 30 people (scheduled in groups as theres a high no-show rate in these areas too) and talked to over 50. I took only 3 applications and accepted ONE, settling for less rent because she "just realized" her voucher was only for 2 bedrooms despite coming from a 3 BR.  She moved in March 1. That home is just blocks from city buildings, but didn't attract working professionals. Although Im still cashflowing well, I'm not so sure I want to invest again in that city. Its a 30 minute drive, so I can do as well closer to home (I also self manage). 

Another, a duplex I bought in January and just got occupied is in a high crime city, but sits between a university and a large hospital. I now have a Doctor on the first floor and a working professional on the second, who just relocated. I was very honest with both about the area, telling them to check crime maps, etc.. But my reno was well done and it worked. Im getting above average rents. 

So it's tricky!  Your profit potential is determined WHEN YOU BUY, so calculate wisely and always start with the worst case #s. If the worst case calculations show profit, THEN you can look for ways to improve from there. 

One investor I know looks for a minimum of $200 "per door" per month, but that would be my absolute minimum. Landlording is a lot of work!

Thanks James. This is near Walnut & 14th,  just east of Lawyers Row. While it's still rough, it's not far from improving areas and revitalization efforts.

While that was definitely a factor, it's still a gamble if the city improvements will translate into appreciation for me. Would be great, but not counting on it.  

Since the home was renovated thoroughly in the past decade, its mechanicals & shell are all updated if not new, it doesnt need much to be rent ready.  Cash flow should work nicely. That was the clincher. 

When I started learning Wilmington, I had higher hopes than this area ...I do hope to move on up!  Thanks for your input.

Yes, BP has a calculator you can use, and it will show you the other info you need on the deal: taxes, utilities, expenses (lawn care, maintenance), city fees, loan interest & payments, etc..

Look for some of the instructional webinars on this site as well. 

Thank you Greg!  At this point, I'm only dreaming of a mixed-use development - in a FOZ. I've found land but have no idea where else to begin, and certainly can't afford it myself!  I took a quick peek at your site. Is this something your company handles? 

First, I'm a local investor and an curious about your deal. Where is it and how many units?  Feel free to PM me. 

Second, fyi, those rentometer numbers look high for the area. I'd look to Craig'slist first, then Zillow. The problem I've had with Rentometer is it uses a distance radius for data, which in this case mould encompass Lower Merion, etc.. it might be better for larger suburban towns where there is less variation within blocks.

I am a 14 year RE investor, but newer to Wilmington. Flipped one in Hedgeville earlier this year, and settle to purchase my first rental tomorrow.

I've done my own research, but does anyone on BP rent on the Upper East Side?  to give an impression on rent income and finding tenants?

Its a: 3/1 row, unfinished basement with W/D.  Has or will have: newer windows, heater, plumbing, and electric. New flooring and paint throughout.  Rear fenced yard. On street parking. Eat in kitchen and large LR. Close to park and trails. 

We are attentive landlords who are choosy about tenants, looking for long term renters. I'm willing to renovate a bit to attract the best rents and the best tenants.

Thoughts or questions?

Thanks in advance. 

We bought a property in 19131 that had one outstanding violation for a roof issue. In our case, we made an addendum stating we would clear it up and about 3k of the seller's proceeds was held in escrow until we were able to resolve the violation with L&I.  We paid for the fix (per our negotiations), so I believe the seller's money was just held to cover the city fees (again, per our negotiations).

To clear it, we contacted L&I who explained the process, which I believe involved a new permit. When complete, they said they'd come out to inspect. Not sure if they did, but they cleared us soon after.  They were actually pretty responsive to our communications and accommodating. We never had to go in person.

Long story short, it was much like the typical permit process, and you can structure the deal as you wish. If you dont have time to file permits and such, there are expeditors as Jerome mentioned. 

BUT, for us, the fix was simple roof patching. For your buyer, it sounds much more complicated, involving the structure, so I assume you'll require L&I site visits, multiple permits, etc.. A contractor experienced with Phila's builiding requirements would be a huge advantage to your buyer. 

505k sounds really high for a duplex. To what extent have you analyzed this deal?  Are your rents equally high?  Im guessing you'd need rents close to 3k/mo to cash flow. Has your lender preapproved these numbers?

Yes, you can transfer to an LLC later, IF your lender allows it, but there will be transfer fees and taxes.

Be as stringent as you can during negotiations; question everything, assume nothing.  Remember, it is always your choice to accept issues or walk away. Again, this is a super costly property. Dont get distracted by the excitement of the deal. 

If you can get one unit fixed and rented first, that would get some cash flowing. The address the second, then the exterior. That is IF the exterior doesnt detract from your rent value.  

So much more to discuss!  But the numbers truly concern me.  Feel free to message me privately for a bit more info. I'm a mom to 3 your age, so I'm compelled to look out for you!  

I messaged you Jarad.

Any new input on this?  I'm in the same boat. Without a year lease, no bank wants to take on a mortgage, despite the higher income.