All Forum Posts by: Jimmy Alexander

well said. thank you!

@Tim Johnson thank you for your insight. Definitely appreciate it!

@Tim johnson

@Tim Johnson from my research over the last few month it shows that this market can handle those numbers (950 and 900 rents). I've even seen similar sized units go for $1000 a month for the 3BR unit. My hesitation comes from inheriting these tenants that are paying 700/month then trying to make drastic rent increases. And by sweet spot I mean the course of action I take to increase these rents. For example do I attempt to make a $50 rent increase every few months? Or do I try to get these tenants out, make updates and then bring in new tenants. I am assuming an immediate rent increase from 700 to 900 would cause the tenants to simply not pay it. 

Hey Biggerpockets family!

So I'm looking for some advice from investors. Im currently actively looking for LTRs in NEPA and I keep coming across the same setback that is making me second guess potential investments. Im finding multifamily properties that would cashflow great at fair market rents but the current rents from inherited tenants are very low. What's you're opinion on inheriting tenants with low rents? is there a sweet spot in raising rents to prevent tenants from not paying so I can avoid an eviction if possible? And do you think its worth it to purchase a LTR that produces a low ROI with the low rents for the potential of raising them to fair market rents to make the investment worth it. I do believe a lower rent for a good long-term tenant is worth it but not if the house barely produces cashflow. Here's my breakdown of the current prop im looking at:

Listing price: $130k

unit 1: 3BR/2bath 1329sqft $700monthly rent

unit 2: 2BR/2bath 1329sqft $700monthly rent

2 car garage used by both tenants

expenses: 239/month taxes, 200/month water bill, 100/month insurance + umbrella policy, 50/month garbage, 5%/5%/5% for repairs vacancy and capX

With the current rents of these long term tenants it makes $132/month cashflow with a 4.34%CoCROI. Obviously not a good investment when looking at these numbers

But with fair market rents of $950 and $900 for these units it would cashflow $518/month with a 16.58%CoCROI

this is the situation I've been seeing with almost every on market deal in the area so far, so my question is: is it worth it to try to raise these rents over time to make it a good deal? should I be looking for vacant units to update and rent at fair market values? should I try using some techniques to get these tenants out and avoid and eviction like cash for keys?

Any advice or guidance will be greatly appreciated! If investor would like to talk and network feel free to send me a message for my contact info.

Good Afternoon everyone! Im a new real estate investor from Brooklyn, NY studying the Scranton, PA area. Im currently on a mission to find myself a great real estate agent (preferably one who is an investor themselves), a great property manager, a great lawyer, and CPA. I am familiar with the resources available on BiggerPockets but Im here reaching out to learn more about some personal experiences investors have had within Scranton PA. I have done an immense amount of work in my education phase from reading a few books by Brandon Turner and Joshua Dorkin as well as listening to the BP podcast and the real estate rookie podcasts daily. Im ready to take another step forward and begin building my team so any advice will be highly appreciated. Whether that be recommending that I use or even stay away from certain agents or PM companies. Thank you BiggerPockets investors!

Good Afternoon everyone! Im a new real estate investor from Brooklyn, NY studying the Scranton, PA area. Im currently on a mission to find myself a great real estate agent (preferably one who is an investor themselves), a great property manager, a great lawyer, and CPA. I am familiar with the resources available on BiggerPockets but Im here reaching out to learn more about some personal experiences investors have had within Scranton PA. I have done an immense amount of work in my education phase from reading books by Brandon Turner, and Joshua Dorkin as well as listening to the BP podcast and the real estate rookie podcasts daily. Im ready to take another step forward and begin building my team so any advice will be highly appreciated. Whether that be recommending that I use or even stay away from certain agents or PM companies. Thank you BiggerPockets investors!