All Forum Posts by: Joe P.

@Pat L. the area by the sump is bone dry. The water is leveling at its lowest point in the basement and isn't high enough to hit the sump, apparently. So its just a puddle with an idle sump.

I'm wondering if a french drain is needed as @Justin Brown indicated?

Hi all, I posted in another forum about the actual water in basement problem (appears to be water seeping in due to heavy rains, may call a basement waterproofer) but I have another immediate issue I need to figure out.

My current tenant is moving out tomorrow (Sept 30) and I have a tenant lined up for October 1. I can have the house cleaned/prepped/ready for the new tenant, but this water issue is brand new.

I am supposed to speak to the new tenant today. They have not signed any agreements yet; I've only notified them that they were selected and I sent copies of our lease for their review.

I'm trying to work out how to proceed. I plan to be honest and let them know the recent rain has brought in a difficult water situation, which I am willing and working to fix ASAP. However, I wouldn't recommend they use the basement for storage, nor do I think it's feasible to use the washer/dryer in the basement (they have to dance around huge puddles of water slowly receding).

I was thinking of offering them the option to cancel, but I suspect that won't work well for them since they're expecting to move in. With part of the house technically unusable, I wanted to offer a rent discount so they have a place to live with the understanding that laundry/basement may be unusable or less than desirable until resolved, perhaps $100 off per month until resolved or something.

Any thoughts/advice?

So a new check valve was installed to replace the existing check valve, which was definitely leaking.

I went to the property today and all the new piping, fittings, and check valve are bone dry.

I think my issue is...water...and lots of it...is making its way into the basement somehow when there is heavy rain. This appears to be seeping up from the floor, but I've yet to catch it in the act. The walls are dry but the floor is wet.

One of my properties is in a combined sewer system. Whenever it has rained, and it has rained extensively here in PA/NJ, the original backflow valve installed was failing.

I had my plumber who I trust install a new backflow valve; they removed all the old pipe, brought in new PVC and checkvalve (installed right over the sump pump by the edge of the basement). This was Monday.

My tenant came home today after a few days away and some terrible rain, and said the basement was worse than ever. He said its now leaking by the newly installed backflow valve.

I'm lost on this one. My plumber mentioned it could be a city problem, but there has to be some recourse to prevent this, no?

Any help would be appreciated.

Thanks all; so only two applicants went far enough for the actual TransUnion screening. The applicant I am selecting just had a stronger all-around profile, it wasn't something specific in the report. I'm not sure if that makes a difference.

@Nadine Delille, here is my "come to Jesus" moment with you.

What is your PLAN?!

If your plan is to get involved in real estate, then you need to redevelop and fine tune your plan.

You have no purpose, no end game, and no path to reach the aforementioned.

Me? I want to get involved in real estate, because I want to obtain enough units to meet my passive income goal per year ($100,000 / $8,333 per month).  I want to do this within the next 15 years. I will obtain this by purchasing properties, leveraging cash or mortgages, or partnering with others.

This is a definable, measurable, time-based goal that will be met by defined criteria. I am getting involved because I want passive income. The goal can change over time, but I've defined what I want to do and how I want to meet it.

I also sat down for several hours and put together a business plan which helped me to realize how I could get started and going. After doing so, I realized I could extract approximately 30k from a property by selling, to start the ball rolling. I am also saving a defined amount of money to meet a "raise money" goal in 5 years. This, combined with expected cash flows, will allow me to buy the next property. I'm also actively networking with others to increase my funds/passive income by partnering in deals, providing income, working extra, whatever I can do.

The point of all this is that I am approaching it like a business. That's what real estate should be, because you're putting your money to work. Stop bouncing around to a million different things, come up with your GOAL, your PLAN to meet said GOAL, and outline a realistic path to reach it.

You don't have a lot of funds...OK, how can you get more funds? Is it worth more to still live at home, save every penny, and then look to get a property to house hack? Do the analysis

To me, you are struggling because you are a dog chasing cars up and down the highway. You have no realistic goal and no plan in which to reach the goal. You read BP and thought "I'll be a real estate investor!" but didn't think through what that meant. I suspect many people here do that. I did that for MONTHS until I realized the only thing that would get me moving is a goal, a plan, and spending the time to develop it. Even if I'm wrong, I'll have something to base it on.

I wish you good luck...get serious about it and things will start to come into focus.

Hi all -- I have received multiple applications and have gone through the process of tenant screening, and want to select the best candidate (and deny others).

This property is in NJ. I want to let those folks know that we didn't accept their application, not because of any bad reason, just that we selected the strongest application based on all factors.

Do I require an adverse action letter for those denied applicants? Do I/should I take into consideration anything else before going down that path?

@Joseph Ems I could have sworn you asked this exact same question a few days ago, in a thread all its own? Can't seem to find it but I feel like I read this question...word for word...a week ago.

Regardless, I don't see much cash flowing in Philly these days. For mom and pop investors, the deals are probably gone. Look outside of Philly in C and B neighborhoods for opportunities.

I sold my Philly townhome to a NY investor at the end of 2017. Price was 207,000, he paid all cash, and the max rent is $1400 a month. Even if the area appreciates (7th and Washington), it won't magically become a $2000 a month property. Doesn't hit the 1% rule, but he bought it. That's the kind of influx we're dealing with.

I just bought in Gloucester City, NJ...lots of additional costs (flood ins, two water companies, township requirements, etc.) and high taxes, but I'm renting a duplex for $1900 a month and I paid just over 100k. OK neighborhood, close proximity to Philly...thinking short term cash flows with long term appreciation (hopefully) and using cash flows to hold and BRRR as needed.

Keep us posted @Brian Pulaski...utilities are always a PITA both in needing service and for "gotcha" costs either through purchase or through ongoing operations.

The property I just purchased, I had probably 7 or 8 conversations with the previous owner because the bills simply didn't make sense, and of course they forgot or declined to disclose certain things.

Also ask yourself at the end of the day, lets say the bill is $1000 but this is a good deal and you want to make money. If you treat this like a closing cost of purchase, what's the impact to your overall bottom line in YR1? How about after 5 years, or 10? If its anything more than a fraction of a percentage, I doubt it'll impact it tremendously.

On said property, I am dealing with plumbing issues not even a month into ownership. But I've got $6000 set aside per year for CAPEX, maintenance, and vacancy (no vacancy so far). This stuff happens but if its a good deal and you're prepared for these things, at a reasonable rate, its just stuff to deal with. I can solve an electric bill, but new wiring, new plumbing...far more onerous. You know what I mean?

Someone has to buy, manage, and maintain class "D" properties. Personally, I know that's not for me. Some people may make their money there and all the more power to them, but it wouldn't be me no matter how good the numbers are.

However, this sounds like a numbers game to you, so I see the COCR is around 20% and based on the true net of $1600 it sounds like you've provided us all the expenses.

I always like to run numbers personally so see what I input below and make sure its correct. Frankly, again, I don't think I would invest in an area I wouldn't personally feel comfortable living. The fact that the property makes money hand-over-fist, and the current investor is leaving (for unknown reasons?) makes me nervous.