All Forum Posts by: John Cassel

I agree with what @Marc Winter & @Bob Derwin said.  I know in York you can put it in the tenants name but they can put a lien if unpaid and rack up a lot of late fees.  For some of my properties, I just have the property management company bill back for last month's water & sewer.  For heating, electric & trash I have those in the tenants name if they are responsible so it doesn't come back on me/the property.

Hope this helps!

John

@Edgar Diaz if you are looking at multifamily properties I would also look at York & areas surrounding York & Harrisburg.  There are a lot of areas outside both of the cities that have good rent/price.  I stay out of York City and Harrisburg City because a lot of those areas it is hard to force appreciation or do a value add strategy. 

If you need any help in area feel free to reach out and connect.

@Beny Bini it all depends on the market.  If deals in your market with similar characteristics (age, condition, demographics of the area) are going for a 7 cap then that is fine.  My recommendation when doing the underwriting would be to use a higher exit cap rate (maybe .5%-1%) and if the numbers work out then it should be worth pursuing.  I have found that if there is a large value add component you might be able to get away with paying a lower cap than what is normal for the specific market due to the large amount you can increase the value. 

If you are wondering what your market cap rate is, just reach out to a couple brokers in the area and they should be able to give you a general range for that type of asset. 

Hope this helps!

John

@Shaquan Webster I agree with most of other replies but depending on what type of investing you plan on doing, make sure you underwrite your deals and run scenarios for bad situations. If you are buying and holding maybe you see how the property will perform if rents drop 10-20% or vacancy goes up to 15-20%. You'll want to know if you can still cashflow even with those factors so you wont have to lose the property. If you are going the flipping route then maybe you could lower the projected ARV or selling price in case of a dip to see if you will still profit off the deal. It is always better to build a cushion in and be a little extra conservative with your numbers.

Generally the sooner you start the better.  So once you feel comfortable with your knowledge base and investing your money, dive in.  A common theme on Rod Khleifs podcast is investors saying they wished they would have started sooner.

Hope this helps!

John 

@Aaron Froggatt I apologize, as Andrew said I should have said South Central PA.  I am looking at deals all over PA but focusing more on the South Central Area.

@David Smith Harrisburg & York are great areas if you are looking for a good rent/price ratio but as Andrew said you need to really know the market as there are areas that vary significantly in demographics & rental rates.  If you need any more information on have questions on the area feel free to reach out!  I would love to help where I can.

Thanks,
john 

@Brian Adams thank you so much for the response.  I will definitely keep plugging away with my strategy as I know it is only a matter of time until I land that bigger deal.  I am constantly trying to increase my investor base so when the deal comes I will have more than enough to close and shouldn't have to scramble for funds.  If you are ever back in the Lancaster area to visit family or anything else, please reach out.  I would love to just meetup for lunch, my treat.

Thanks again for everything!

John

@Brian Adams that's great, I have lived in York my whole life to we didnt grow up to far from one another.  See my answers below:

1. I am currently direct mailing to properties 10-100 units in those areas, I have recently narrowed my list down to properties that the current owner has held more than 6-7 years.  I have also been cold calling the properties that I have been able to find phone #s for.  The most recent list I posted on upwork.com for someone to skip trace and find me accurate phone #'s so I am hoping for good results there.  I am also networking with members of BP & constantly touching base with brokers in the area.

2.  I have seen a wide range, anywhere from 6-10 cap depending on the area.  Lancaster usually is on the lower end and there is a wide range of areas in York that can land anywhere on that 6-10 cap scale.

3.  Depending on the size of the deal, I will either partner or syndicate.  If the property is less than $1m it doesn't make sense cost wise to syndicate so it will just depend on the size of the deal.  I have people that are interested in investing but if the deal is $2m or over I will most likely need to pair with a more experienced investor or a capital raiser.

Hope this helps!

@Brian Adams I currently do not have a property under contract but my goal is to have one in the 10-100 unit range under contract in the next 2-3 months and close on one by the end of the year.  I am looking in the areas around York, Lancaster & Harrisburg mostly and would love to link up and discuss.  I am definitely interested in partnering on my first larger deal and want to network with others in the area or in PA that are doing larger deals.

I look forward to hearing from you.

Thanks,

John 

I am looking to meetup and network with other multifamily investors in Central PA, mainly in the York, Lancaster and Harrisburg triangle.  The meetup I go to in the area doesn't focus on larger MF properties (10+ units) so I am either looking to network or if there is interest start a group for the area.  I plan to acquire a property of 10+ units in the next 3 months and hopefully 2 such properties by the end of the year.  If you are interested in discussing, networking or partnering on larger deals in the area please reach out!

I look forward to hearing from the community.  
Thanks,
John

@Yonah Weiss I am going to Rod Khleifs MF bootcamp in Baltimore this year.  If any one else is going let me know.  I would love to meet up and network!

John