All Forum Posts by: Kyle McCorkel

@Colleen Hunt

Hi, full time REI here. I'm based in Hummelstown but I look for deals a lot over in Camp Hill as well.

I don’t want to go into too much detail, but I’d just want to caution you to make sure you’re getting a good deal. There’s so many people overpaying for properties in our market. I’m not saying some of them don’t make money in the end, but I think most of them don’t, and the ones that do need to get lucky.

Also, make sure you value your time. If you profit $5k on a deal, but you did all the work yourself and it took 500 of your hours over the course of a year, congrats you just took a part time job paying $10/hr.

Feel free to message me if you want more market specific details.

@Cameron Tope

Maybe I would, but lenders require it and all my properties have a mortgage

@Cameron Tope

I think I would sleep like a baby knowing my cash flow is $1000’s higher

I’ve been using the same insurance broker for around 4 years. He’s written dozens of policies, rentals and flips, vacant and occupied.

I’ve recently gone and gotten a few quotes from another broker and they came in a few hundred dollars lower PER LOCATION. Portfolio wide, this could be thousands of dollars of savings per year.

I’ve come to realize that the difference is that all my current policies are DP3 and all the new quotes were DP2 (insurance jargon). I had no idea what this meant until yesterday. Basically the difference is what types of events can be covered in a claim. With DP2 there is a list of a few dozen things that are covered. With DP3 there’s a short list of the only things that AREN’T covered (things like nuclear war).

I'm seriously considering switching to less coverage for higher cash flow. We keep a ridiculous amount of cash reserves (18-24 months PITI), plus we have lines of credit we can tap into as well. My line of thinking is, the chances of an uncovered disaster are outweighed by the benefit of increased cash flow. And if we do have something happen that isn't covered, we have the cash on hand to cover almost anything.

Has anybody else wrestled with this type of insurance decision? Curious to hear how others manage their risk.

@Cory Iannacone

I don’t have first hand experience but I’ve heard Carlisle is more lenient. Usually the issue is parking, and Carlisle doesn’t have as much of a parking issue as some other Central PA towns.

Check those codes first. Also check what the zoning is...it might be zoned “up to 12 units” which gives you some leeway as long as you can meet their parking requirement.

Btw, we just finished a 3 unit in Carlisle!

@David Krulac @Kalman G Szabo

I don’t get it. Why are you, the buyer, responsible for inheritance tax? You didn’t inherit anything, you bought it.

(Not a legal expert by any means, just trying to understand the situation for my own education)

@Amit G.

How big of a property? (How many units?)

Hershey prices for multi family are mostly unrealistically high. And there’s not a lot of sales...people hold onto their properties and don’t sell, probably because they are able to charge premium rent for an out of date product.

I was an industrial engineering consultant for about 10 years. Learned a lot about how people, businesses and processes work!

Now I’m a full time real estate investor.

I can’t speak for others, but for me I think the analytical nature of being an engineer, plus the fact that it set me up fantastically financially, helped me to become a real estate investor.

@Cory Iannacone

Beautiful. Love it. No excuses!

@Cory Iannacone

As always, a great explanation and breakdown of the specifics. Fantastic insights too about how forgiving REI can be when held for the long term.

Before and after pics look amazing.

I hope you and your family are doing well during this pandemic. Are you buying more currently?