All Forum Posts by: Justin Brown

Yes we are planning another one between thanksgiving and Christmas! For everyone that was able to make it I apreciate you coming out, it was a great time! Looking forward to the next discussion! 

Josh Cook great question! I’m in a sellers market too and it’s tough. A few points that might help you. People run from mold so he will want to stay with you if possible. If they had not disclosed it before they will have to do so now, so you tell him to have it done or you walk. Second thing is that you can submit in your reply who exactly who you want todo the work. That way to @Thomas S. point you can mitigate the sellers going cheap or doing it themselves to pass buy it. We have a ton of radon here in PA so I submit in my reply if radon comes back high “Seller at sellers expense to install radon remediation system by ABC Radon Specialists and furnish receipts of completed work and satisfactory retesting of the radon level...” this way I know it’s my guy doing it and will be done right. Sometimes I’ll submit a quote with my reply so that they can see he is priced reasonably but I still know it’s getting done right. You can do the same thing for the mold.

Hey @Ryan Kunzmann not sure if @Stephen Kunen made a typo or is referring to something else but here is the link to the meet-up we are doing tomorrow (Thursday) night: Lehigh Valley Investors Market Discussion Hope you all can join! 

Hey Gang! Wanted to try to get a better head count for finalizing our accommodations and refreshments. If you are 78.95% sure your coming if you could RSVP that would be awesome! Can't wait to see everyone there tomorrow! 

P.S. I got a new copy of @Scott Trench book "Set for Life" burning a hole in my backpack so come out and someone take it off my hands! 

Hey man! Go Steelers! I grew up in center country rooting for the Steelers, and feel at home when my travels take me to the steel city. If you want to stop by Allentown on your way back to Pittsburg hit me up! Beers on me! Sounds like a great plan. Friends of mine are just about done with a live in flip their in Pittsburgh and the prices are really nice. Good luck and thanks for your service to our country and sharing your story!  Cheers @Ryan Kunzmann

Not sure about the site you just linked but us not normal people, I assume you mean realtors lol have to pay to be part of the MLS in the area of the state we are licensed in. There are some great online resource that catch listings 24-48 hours after they are posted but the best thing todo is find a realtor and ask them to set up an auto-email for you particularly if you're in an area that has a strong market you don't want to be behind of the competition. You're going to need a realtor to show you the property anyway so it helps to have one lined up helping you out.

@Brian H. congrats on closing on your first flip! How did it go? I think you're so right that it depends a lot on factors specific to each investor's comfort level.  Problem I run into is most duplexes around here are going to require work and lazy landlords have long term tenants in with low rents. I also think of a multi family unit as having a multiplier or things to go wrong, two water heaters, two sets of people to chase for rents etc. But there's no arguing that if you leverage you will be able to get better cash flow. 

Hey @Raymond Y. pumped you're looking to invest in Allentown! Paying all cash makes things a lot simpler for sure and sellers like that. You also have a lot of single family row homes that you can pick up around 50K that are in great shape. I helped a client sell a SFH last month that made great cash flow. Here it is contrasted with a duplex in bethlehem.

SFH: 53K purchase price and 850 rent, 

After taxes, Insurance, management, maintenance, trash and vacancy your looking at 483 a month cash flow. 10% cash on cash return.

https://www.biggerpockets.com/calculators/shared/799536/883374da-28f1-4c6c-8db3-66a54da2a19c

MFH: 95K offer with 45% down probably could raise rents a little to get 1400/month 

After all the expenses plus the debt service you're looking at 528 a month cash flow with 12% cash on cash

https://www.biggerpockets.com/calculators/shared/799536/92455a43-f803-4687-a155-214530dc54d1

MFH: 95K offer with 20% down drops you to 401 a month cash flow, but you only used 26K giving you 18% cash on cash return leaving you with 24K to go buy another place... 

https://www.biggerpockets.com/calculators/shared/799536/37e0d7d1-2628-4c90-9978-7af38635110d

Depends a lot on your goals. You could always pay cash on the first place, get things stable and then pull out a chunk of your money for the next one. Hope this helps! 

Its all about the money right!  I think you're exactly right, who cares what the cap rate is if its making you the money you want. Cash flow, and cash on cash return I think are much better metrics. As a realtor I see people all the time like to inflate the cap rate anyway so I ignore it and just move to calculating the expenses and what it ends up cash flowing. 

Great last name @Sarah Brown looking forward to meeting you! Your working in a great area for filps! I would be happy to prep some good market analysis and we can definitely discuss peoples perspective on some of the other great topics you mentioned!