All Forum Posts by: John Sangl

Following as I received the same email today.  I have no experience with capital calls either. 

@Paul Battaglia I invest in the Erie market. It is a good cashflow market with very modest appreciation.

Hi Rubin, 

I live in Erie, PA and have a mix of investment properties in the area (Couple Single Family properties in City of Erie, some multifamily in West Millcreek(Just outside the city).  It is a pretty good cashflow area.  The area has suffered from stagnant population & job growth and gets a lot of negative press due to the amount of snow(it is a lot).  I think this is why Erie isn't as saturated as other markets. 

That being said - there is a good group of investors in Erie and the cashflow is good.  There is a significant amount of Healthcare, Insurance(Erie Insurance) and Manufacturing(Locomotive production at WABTEC).  There is some mild appreciation in property values as well.  If you're willing to work with low-income properties and some of the headaches that come with it, you can get great cashflow.  

I think Erie will continue to cashflow well, but don't expect significant appreciation.  If you have any additional questions, feel free to message me. 

John

Hi Gary, I'll echo what Anthony said. I would steer clear of lower class properties unless you are very comfortable working with that type of tenant. The hassle factor will likely be very high. If these properties are located in Erie city limits, they will be subject to a bi-annual inspection. Would these properties require any work to conform to the city's requirements? Are the properties sub-metered? Erie also requires water, sewer & garbage to stay in your name so you will likely be paying that as well. Sounds like you would have close to 20% down + closing costs on the better class property. Should cash flow some with that payment. Any value-add to get rents up a little? I have a couple SFR's near LECOM and while they don't have near the cash flow, they require almost no time to manage. Good luck! John

Welcome to BP! I am an investor in SFR's here in Erie, PA. I currently have 2 rentals which have been cash-flow positive from Day 1. It's a lot of fun. Good luck in your endeavors!

So buy the home & separately negotiate to buy the debt from the nursing home? Please clarify if you are able. Thanks!!

I would ask the lender for specifics on their reasons for saying 'No' and then working on a strategy to get them to say 'Yes'. Are they just not sold on the project in general?Do you lack a certain percentage of your own capital to partner with them? Are you carrying too much debt? Good luck & keep us updated!

Kiran Alisam I'm relatively new to Erie real estate investing(just closing on my 2nd SFR). I have used a broker for financing. Ultimately, the loans were through Northwest Savings - great rates and reasonable fees. Good luck! John

I invest in single family houses.  My ultimate goal is to invest in larger apartment complexes.