All Forum Posts by: Joseph Nance

@Trevor Deeter, Scranton is not an easy market. It is an old mining town. A lot of the people of Scranton are not large earners so it keeps rents very low. My duplex I am lucky to get 695 per unit and another duplex only 595 per unit. The single family unit brings 595 as well. Scranton does have expensive property taxes from what you can buy the properties for as well. I was lucky with my first purchase for only buying it for $3600 but we also put 68K into the property. The other units were purchased on 1 deed and cost 65K but needed 10K in work. The gross cash flow is 1695 but only cashflows 450 a month. Since I took out a hard money loan for the down payment I am currently running negative cashflow but it is only for short term. After these next couple of money I am positive again.

After listening and reading multiple people I have determined that there is not such thing as a bad deal just how can you make it a good/better one

I own multiple properties in Scranton, @Trevor Deeter you are incorrect. I have never nor do ever plan on living in Scranton. My properties range from single family along with duplex.

@Muhammad Thomas If you interested in more information about Scranton please feel free to contact me. I can recommend a property manager along with contractors. 

I am also in the Savannah market and we have chosen to use Mia Madison Property management company. Henry so far has been fantastic. Our relationship has only been a short time but he has been super helpful.

Investment Info:

Single-family residence buy & hold investment in Savannah.

Purchase price: $38,400
Cash invested: $12,500

This property we purchased using an auction site. The single family property was listed as a 2 bedroom 1 bath. It is really a 1/1 bath. The second room does not have a closet. Lucky we were able to rent the unit as a 2/1 to local college students. My only warning is you can not trust what the listing says.

What made you interested in investing in this type of deal?

What interested my peak in this property was location along with rent potential. The Savannah market is growing and many northerners are retiring and relocating toward the south. The original auction price was under 10K which further peaked my interest. Our plan at first was not to go over 25K, when the auction started we got carried away. I had a number of property managers all check out the property and each said the rent ranged from 900 - 1200.

How did you find this deal and how did you negotiate it?

I used Hubzu

How did you finance this deal?

For the particular deal I used a hard money lender (bestegg) for a 3 yr loan at 6.99. They did offer me an option of 5 yr at 8.99. Due to the fact I personally felt this property would generate 1200 a month and because of my other (2) units I would be able to pay the loan back using all the properties income and still have good cash flow. In addition I plan to BRRRR this property once the property has been in good standing for 1 year.

How did you add value to the deal?

We removed all the trash and debris from the property, repainted the interior and exterior. Replaced the wood rot,which was on the exterior of the house. All new appliances and fix a roof leak.

What was the outcome?

We ended up rented this property for 1200 a month with the assistance of a property manager

Lessons learned? Challenges?

Learned not to trust a listing, and that Savannah contractors are hard to find

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

We used, Bestegg.com, Mia Madison properties for property management

The first site I used was with my PA property, williams and williams. They have low fees. Savannah is a odd ball market. I found it extremely difficult to find a reliable contractor. Many of the properties are in truly dire need of complete rehab as well. The best way I can put it, it is a good ol' boy city. Everyone is friendly to your face but everyone talks behind.

Are you able to give some better feedback from using them at this point?

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Scranton.

Purchase price: $3,600
Cash invested: $54,000

Top floor 2 bedroom 1 bath
Bottom floor 3 bedroom 1 bath

What made you interested in investing in this type of deal?

I found it while searching auction sites

How did you find this deal and how did you negotiate it?

auction site

How did you finance this deal?

cash

How did you add value to the deal?

Fully renovated

What was the outcome?

Both units rented

Lessons learned? Challenges?

I learned that the scranton market is declining and the amount of money I have invested I will not be able to get my return on. I looked at refinancing the property but was unable to due to the fact the property only appraised for 32K. I need a stronger market in Scranton in order to refinance. The origination fees allow are 6K

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No

Investment Info:

Single-family residence buy & hold investment in Savannah.

Purchase price: $38,400
Cash invested: $5,000

2 bedroom 1 bath with full fenced in yard. Renovated 3 years ago by prior owners

What made you interested in investing in this type of deal?

Good investment

How did you find this deal and how did you negotiate it?

auction site

How did you finance this deal?

bestegg.com

How did you add value to the deal?

All new paint and porch

What was the outcome?

Higher yielding rent

Lessons learned? Challenges?

Downtown Savannah does not allow you to rent your home as a vacation home without resident occupancy of 3 or more months

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

NO