All Forum Posts by: Justin Brown

Good catch Joe, I was light on the management and vacancy. Haven’t seen it, but pictures looked like they were in okay shape, good to rent out, but definitely opportunity for value add between tenants change overs.

At asking price and at current rents its cash flowing even with debt service.  With a cash on cash of 12%. This is just an example of some of the stuff that is available downtown Allentown. 

Here is my calculator report on it with debt service on it. 

https://www.biggerpockets.com/calculators/shared/799536/b3569c30-b49a-4b40-9355-f1face2b2c97

Nice, thats something we can work with. If you do your homework right you can find some deals in that price range for sure in Allentown.  A three unit just came on the market yesterday that looks decent. Here are my numbers... @David Ribardo and @Joe Colasuonno jump in with any edits/comments you might have 

Purchase Price $149,900 (50K a door rule looks good) 

Three units total gross/month 2239 (1% rule looks good) 

Fixed expenses: 

Taxes 2517, 

Trash 1125 (375/unit in Allentown unless private collection deal previously arranged) 

Insurance: 703 

Common Electric: 519

Water/Sewer: 802

Allentown Fee: 225 (75/unit/year) 

Variable Expenses:  

Vacancy: 2239 (One months rent of each place, or 8.3%) 

Management: 1800 (50/door/month) 

CapEx/Maintenance: 3000 (1000/door)

Total Operating Expenses: $12,930 

Total Gross Income: $26,868

Net Operating Income: Op Ex - Gross = $13,938 

Divide your NOI by the cap rate your looking for and you have your offer price. At a 10% cap its not too far off.

The absorption rate in Lehigh county is best in the 100-200K price point right now. At less than a month. 200-400K is at around 2 months so I would say tons of growth. What type of investing are you looking todo? 

Nice article @Joe Colasuonno! 

Thanks @Chris Youssi ! Hard work is a good friend of mine! We hang out a lot! Lol. 

and thanks @Rick Jones that would be great! If your near Pennsburg, have you ever been to Powder Bourne? Best Bacon ever! 

Thanks @Brian Adzadi for the recommendation!  @Chris Russell we have our next meet up June 21st in Allentown. Would be great to meet you in person and see how I can help you from there! 

Hey Big Pocketeers! 

I looked down and saw that I had posted 99 times, so for post 100 I thought I would do something special, then I realized I never introduced myself!  I grew up around real estate with my Dad being a custom home builder, so when I got laid off from my corp america job 4 years ago I got my license and started helping people buy and sell homes. I had been house hacking/live in flipping my first single family at the time and it saved my butt when I lost my job and have wanted to do more ever since. The second deal I was involved in was with two other investors on a commercial property that we are renting out as office/co-working space in downtown Allentown. Allentown is the third largest city in Pennsylvania and part of the larger Lehigh Valley metropolitan area that is booming and is a fantastic place to invest (see episode 276 with my buddy @BryceStewart.) 

I found Bigger Pockets through one of my investor partners and was quickly hooked and have been encouraging everyone I talk with to join the community!  At our office building we have started a local meet up and its been awesome to see new investors making their first purchases as a result of the encouragement and connections at the meet up, as well as veteran investors learning new tools! Come join us the 3rd Thursday of the month, even if your just passing through!  

Helping other people begin the journey on their real estate goals has kept the dream alive for me and I'm excited to share that my wife and I put an offer in yesterday on our first residential duplex. She is more hooked on real estate investing than me and insisted that we move into a duplex by the end of 2018 (with our 3 month old daughter!) 

In addition to real estate, I enjoy discussing goal setting, personal finance and side hustles(thank you @Scott Trench and@Mindy Jensen for the excellent #MoneyShow! !) I love connecting with people on BP so hit me up if you want to grab coffee downtown, join us for our meet up, or you just want some good Dad Jokes, I got plenty! 

God Bless! 

Justin G. Brown. 

#weloveallentown 

Awesome! We always try to analyze a deal so that we are sharpening our skills on how to go after a homerun. Newbies to veterans alike learn something during this time.  We also make time for sharing questions that are on the minds of all in attendance, whether that is needing a good recommendation for a plumber, to discussing market trends. Then depending on if its an off month we will hear from subject matter expert, or split up into small groups to workshop deals that you are in the middle of.  Its a great time all around. Hope you can join us soon! 

@Kyle Lauriano Congrats to moving to the Lehigh Valley! I'm a big fan! We are shooting to be hosting our meetings every third Thursday of the month so I think that would put us at July 19th and August 16th as our next times. Whats moving you to the area? Job, family, its just freaking awesome??