All Forum Posts by: Kyle Kerekes

@Tom Burke thank you!! I’m happy to see all the recent interest in our area as well, just trying to paint an accurate but bright picture of what we have to offer here

@Tanner Foix although I haven't personally worked with them, I've come across and heard good things about @Marc Winter and his company. They've been in the NEPA area for a long time

Thanks @Joseph Firmin ! Appreciation and tax benefits are nice and all, but cash flow is just so so sweet...

@Ross Bowman and for anyone else interested, my favorite way to keep up with these gurus is on the Instagram account @ballerbusters - they are doing great work cleaning up the digital streets. Actually, check out this NYT article: https://www.nytimes.com/2019/1... 

But I also agree with @James Hamling - definitely watch "The Social Dilemma" on Netflix. It will absolutely make you think!

@Nick Scullin thank you!! Nope we bought in Scranton, my friend Tyler is just based in the Philly area (Media). Here's his info: https://www.apexhomeloans.com/... tell him I sent ya if you do talk to him!

@Tanner Foix in my experience anything listed on the MLS that is actually a good deal moves pretty quickly. I would recommend working with an agent who works in the market(s) you're looking in since they see everything on the MLS more quickly and often pull in off-market deals too.

Good agents who work with investors will generally have plenty of lead sources for deals. Hope that helps a bit!

@Account Closed thank you!! That's how most people know about our city lol.

We're currently getting $750/month (water, gas, & sewer included) for our 1br upstairs unit. Will go up to $800 by the end of this year.

The 2br downstairs unit that I'm living in is worth around $900-$1100.

Investment Info:

Small multi-family (2-4 units) other investment in Scranton.

Purchase price: $70,000
Cash invested: $11,000

While renting a small apartment and working two jobs during my senior year of college, I realized I didn't want to rent anymore and began looking for a house-hacking opportunity.

When I told my brother what I was doing he immediately wanted to do the same thing. So we joined forces and within two months had identified and purchased an up/down duplex.

Since then we have been happily house-hacking, living in the downstairs 2br unit, and renting out the upstairs 1br unit to a friend.

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

I was no longer interested in paying rent, and I was very interested in the idea of living in a house I own for free!

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

I found the listing FSBO on Zillow. After the initial conversation and then walk-through, we made a low but fair offer. The seller countered at the number we really wanted to be at and we signed the contract the next morning.

How did you finance this deal?

My friend, Tyler Kight, is a mortgage broker in the Philadelphia area and he hooked us up with an FHA loan that worked perfectly for our situation.

How did you add value to the deal?

Exterior painting
Large tree removal & trimming
Decorative landscaping added
Heating system added to the detached garage
New carpeting

What was the outcome?

We're still happily househacking and building equity to eventually refinance, get our cash, and put it into the next deal.

Lessons learned? Challenges?

The FHA loan approval process can be very nitpicky - but the small amount of cash needed is a major plus for young people and beginners low on capital.

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

My friend Tyler Kight at Apex Home Loans absolutely rocked the whole mortgage process - I highly recommend him!

Investment Info:

Small multi-family (2-4 units) other investment in Scranton.

Purchase price: $70,000
Cash invested: $11,000

While renting a small apartment and working two jobs during my senior year of college, I realized I didn't want to rent anymore and began looking for a house-hacking opportunity.

When I told my brother what I was doing he immediately wanted to do the same thing. So we joined forces and within two months had identified and purchased an up/down duplex from an investor who had recently moved out of state.

Since then we have been happily house-hacking, living in the downstairs 2br unit, and renting out the upstairs 1br unit to a friend.

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

I was no longer interested in paying rent, and I was very interested in the idea of living in a house I own for free!

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

I found the listing FSBO on Zillow. After the initial conversation and then walk-through, we made a low but fair offer. The seller countered at the number we really wanted to be at and we signed the contract the next morning.

How did you finance this deal?

My friend, Tyler Kight, is a mortgage broker in the Philadelphia area and he hooked us up with an FHA loan that worked perfectly for our situation.

How did you add value to the deal?

Exterior painting
Large tree removal & trimming
Decorative landscaping added
Heating system added to the detached garage
New carpeting

What was the outcome?

We're still happily househacking and building equity to eventually refinance, get our cash, and put it into the next deal.

Lessons learned? Challenges?

The FHA loan approval process can be very nitpicky - but the small amount of cash needed is a major plus for young people and beginners low on capital.

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

My friend Tyler Kight at Apex Home Loans absolutely rocked the whole mortgage process - I highly recommend him!

Investment Info:

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

Purchase price: $250,000
Cash invested: $52,000
Sale price: $285,000

As freshmen in college, my best friend and I were able to acquire a distressed duplex that was rented to students at the University of Scranton.

Through active hands-on management and several upgrades inside and outside the building, we were able to keep the property leased and cashflow positive and eventually sold for a profit two years later at the end of our junior year.

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

At the time we were admittedly most interested in the cashflow seen in the student housing market.

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

I found the listing on Craigslist. We went for a walkthrough and began the negotiation in-person, but we eventually settled the deal a few weeks later over the phone and met in person to get it signed.

How did you finance this deal?

30-year fixed mortgage from a local bank - 20% down payment.

How did you add value to the deal?

Foundation repair
Electrical upgrades
Boiler system replacement
In-unit washer/dryer added
Paint
Secured future leases

What was the outcome?

We held for 2 years and sold to an out of town investor for a profit.

Lessons learned? Challenges?

Everything usually takes longer and is more difficult than you originally think.

Have a few local tradesmen in your contacts - you WILL need them.

Work with professionals - they make the process so much easier!

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

A local agent, Kate Daye with ERA Realty, sold the property for us and made the whole process a piece of cake. I can't recommend her enough, since she's an investor herself she knows exactly what is needed to make deals happen.