All Forum Posts by: Khenan Newton

@Jonathan Greene

Thanks for that reference to Daniel. And I'll have to take a look at that podcast to get filled in, because I'm really not familiar at all with the process of charging new higher rents to already present tenants

@Scott M.

Thanks for your reply, Scott. I'll likely be moving into the 4th vacant unit, if that changes anything, however I want to evict all of them mainly to make the repairs process easier, but if there is a way to avoid that and have them pay the higher rent I would be charging (from $400/mo to $950/mo) id be open to that too.

Hey everyone!

I'm getting ready to purchase my first investment property that's a quadraplex and has 3 tenants in it. Each of them is on a month-to-month lease. I have it on contract with a FHA 203k loan with M&T Bank and was wondering about the eviction process in this case. I know it can be rather arduous to evict tenants in Philadelphia in general, but what if they're on month-to-month leases like on this property? Will evicting them be an easier process?

Thanks for any of your insight.
 

@Mike McCarthy

Oh ok. I was under the impression that sellers would use a realtor when in distressed situations as well, or when selling distressed property.

So I contacted a real estate agent to get comps on a few properties I was looking up, and they weren't good opportunities at all--the ARV's weren't high enough for the price they were asking. I abandoned those properties after he suggested I look into a different property that he found on the MLS and sent over to me.

It was a total gut rehab that the seller was asking $69.9k for. The agent said it was a good price since he found 1 comp that sold for $148k across the street from the property we were looking at. I did the numbers and calculated that a good price to buy a property worth that much would be.

I used this formula: 

Max Offer = (Rehab cost + profit + closing costs) - Wholesale fee

Plugging in the numbers I got:

((1560sqft x 30) + 29600 + 14800) - 5000 = 86200

So my max offer would be $86,200

At first I thought I would jump on the asking price of $69.9k, but my only doubts were that the realtor only gave me 1 comp because the other properties in that area had been sold at auctions for rock bottom prices.

If the realtor had given me 3-5 comps I would've been a lot more confident to say go ahead and accept the $69.9k, but I'm relying on being able to wholesale the property to an investor once I have it on contract, and I don't know what I could prove to them by showing them 1 comp.

Should I have accepted the $69.9k 1 comp property?

Any insight would be appreciated.

@Christopher Phillips I'm going to be wholesaling it 😁

I just had an offer for $65k accepted on a property in Philadelphia. The realtor has sent me the contract to look over before I sign anything. I honestly have no idea if the contract looks the way it should (other than the fact that the realtor hasn't written and/or assigns on there correctly, which I will talk to her about). But I also need to know if everything else looks good! 😰 So now I have the realtor and the seller waiting on my response but I refuse to move forward until I know for sure I have the contract set up correctly. Is there anyone in PA who would be willing to look over the contract with me to be sure its a contract that I should be signing? Thanks in advance. I'm literally kinda stuck rn 😂

@Matt Shields so exit strategies are basically the "what ifs" considered?

I've read up on some general info about investment exits. From what I understand so far, wholesaling, flipping, renting, seller financing, and lease options are exit strategies but I'm rather confused on how they're "exit" strategies

 @Matt Shields I mean both really. I feel like it's an expansive topic so that's why I asked for good resources that could help me focus in on the right details

Do any of you guys know any good resources for learning about exit strategies? I just need a simple explanation and some examples of exit strategies so I can get an idea of what investors are talking about when they say "You GOOOTTA have your exit strategies."