All Forum Posts by: John Matthews

 So there's no reason not to move on it. Plenty of (cash) buyers would be open to such a deal provided it's at a steep discount. The issue you'll run into though is that most hard money lenders will require a physical inspection and/or appraisal which will require access to the unit. If you can still get access, there's probably plenty of room to get this at a steal.

I would add the cost of eviction on top of the cost of the rehab necessary. Now how much should the eviction cost? Maybe a few thousand dollars? Probably less if you can actually have a conversation with the tenant, then there might be room for a cash for key situation. I wouldn't help out with the eviction, at least not until after settlement. There's little stopping the seller from no longer selling it if you solve their problem for them, especially if you can't find a buyer willing to close on the deal.

Thanks everyone for the information.

So my understanding was initially that in Philadelphia as a landlord you just needed to supply your tenants with the HUD "Protect your Family from Lead in your Home" Packet. I just came across this: http://www.phila.gov/health/childhoodlead/LeadPain... which states that in Philadelphia, PA we if we're renting to children aged 6 or younger we actually need to have our properties certified as lead paint or lead free. So with that said, for those of you who have had this done, what are the costs for the lead safe certification, roughly? Can I certify this myself?

Also, I know we can't refuse to rent to families with children, but are there ways to minimize the odds that families with children aged 6 or younger will apply, or anything like that?

Hi All,

In small multifamilies where there's no on site maintenance person to shut lights off, how do most of you ensure that your tenants aren't always leaving the lights on in the common areas? I figure my options are either a light on a timer, or motion sensor lighting. Does anyone have any recommendations on which is better?

I'm thinking motion sensor lighting for common lights in an entry way since there's no need for people to be congregating there, and timed lights in laundry areas. Does that make sense to you all? Is there another option I'm missing?

 I'm considering buying a pre-sheriff sale in the same situation from a wholesaler. What did you use to determine the state of the house inside? I'm assuming you were at least able to contact the tenants. The wholeseller I am talking to has told me that the seller hasn't spoken to the tenant for months, and can't get in touch with her. 

My attorney told me that it's much harder / longer to get an unlawful ejectment than it is to get an eviction, so if you can prove they're on a lease, eviction is much easier, should it come to that. That's all I've got though, hoping to see what everyone else has to say...

As an aside, did you buy this cash? I'm assuming no hard money lenders would put down on a property that they can't verify the status of...

@Larry Fried

 Having biked to work today for the first time of the summer, I can say that's definitely true. Though for me, my bike path, the Schuylkill River Trail, is pretty solid. 23 miles to my parking lot at work, and maybe 5 miles of it is shared with cars...the rest is along the scenic (for philadelphia) Schuylkill River. Added bonus: it's about just as fast (or slow, depending on how you look at it) as driving in to work. 

@Mike Girard

Mike, at $250k you can definitely find places in point breeze. If what you're looking to do though is go the duplex, they're harder to find in south philly, IMO. Are you comfortable doing a little work and forcing the appreciation (Buy - rehab - rent for example)? Are you looking for mostly turnkey?

If you'd like let me know when you'll be in the area next and we can sit down and talk. I've got one property that I should be closing on in June in point breeze that's well under the price range you're looking at, and I have seen quite a few more come across my desk lately.

@Lisa Ryan

There's definitely something to be said for something you already have especially since it seems like you're more than a few years into your principal pay down, so you'll be building equity more quickly and could in theory sell for a greater profit in the future. Plus the ancillary benefits you mentioned of letting you know if you're actually interested in landlording!

@Rich Ramirez

It's worth noting that there over here in Philly you can get 2% rule as well. You do have to look for it, but not terribly hard, even in the not so bad areas.

For example, I just bought a duplex renting at 1100 for 45k fully rented (2.4%), with no more than the standard amount of deferred maintenance. And I'm not afraid to go there at any part of the day. I have another three more in the pipeline from the MLS at 2.1%, 2.28% and 2.35% respectively - and I don't invest in areas I'm afraid to travel in at night (though my tolerance may be higher than most). I'm actually slowing down a bit on the acquisition side because I'm starting to hit a wall where I need to find partners to make these happen, and I'm still building that network.

So yes, it definitely still exists.

 I wouldn't disagree with that - making $30/mo isn't quite worth it for me with the stressess/annoyances that come with being a landlord. The only caveat is her finding a better deal. In the meantime, if it were me, I would leave the money in the property until I had a better deal (or knew I would soon). There's also the question of not knowing how much equity she actually has in the property.