All Forum Posts by: Michael Campbell

@Andrew K.

There are some really good recommendations here, specifically from @Steve Babiak and @Michael Perymon.

You definitely want to highlight the benefits of the area like Steve mentioned.  Keep in mind that not everyone is familiar with the area so they may not know anything about the school districts, nearby public transportation, or nearby amenities.

And if your property is the one I'm thinking it is, I think it could probably use some cosmetic upgrading like Michael mentioned.

Just my two cents.

@Account Closed

There are lots of options for funding properties that you intend to flip.

I'd recommend the following:

• Reach out to a few hard money lenders to see what kind of skin in the game they would want you to have.  From my experience, hard money lenders will want you to have minimum 20-25% of your money into the deal (purchase + rehab costs).
• Look for a bank that does commercial lending on investment real estate. I talked to my bank and they offer up to 80% of total cost (purchase + rehab costs) at up to 70-75% of ARV. Banks are good if you have W-2 income.
• You could look for someone to partner with on your first deal. Attend REIA meetings and talk to other investors. See if you can find someone interested in partnering on a deal. I think partnering with an experienced flipper would be ideal for a first flip.

@Greg Ressler

I would recommend talking to an architect who designs row homes in Philadelphia.  They will have experience dealing with L&I and should have a good understanding of the process.  You will need to hire an architect eventually so it would be a good idea to start making contacts now.

@Patrick Edelin

Those sound like good questions for a lender. If you have enough equity you would probably want to refinance out of the FHA loan. But, since you're planning on selling so soon, it might not make sense to refinance.. be sure to consider all costs involved so you can make an educated decision.

@Todd Fithian

In case you are not aware, you can only have one FHA loan out at a time. So, if you want to use an FHA loan to purchase a second property you will need to refinance your first loan into a conventional loan.

@Todd Fithian

I'm not a lender and certainly not an expert on the subject so take my input with a grain of salt. The FHA program is intended for owner occupants. So when you agree to an FHA loan, you are agreeing that you intend on living in the property for at least 12 months. I brought up this same fact to the lender that I worked with, and he said that as long as I plan on being there for the next 6 months after I signed the loan, that would be okay. I think it's highly unlikely that you would get into any kind of trouble by moving out before the 12 month period, but you never know. Your best bet may be to talk to the lender that you refinanced with and get their input. Just tell them that your circumstances have changed and you're now looking to move, but not sure how it might affect your loan.

@Ryan Ahlgrim

Your utility costs are going to vary based on many factors and there is no way to get an accurate answer from someone online.  For budgeting purposes, see if you can get the historical utility costs associated with the property.  However, be aware that tenant behavior is going to be the driving factor in determining utility costs.  If I were you, I would try to find a way to have tenants pay their own utilities.  Look into a RUBS (Ratio Utility Billing System) or see how much it would cost to have each unit sub-metered for electric/water/gas.

@Alex Andrews

Start working on plans for your next mailing!  Think about ways to automate so you don't have to be involved.  Set up a spreadsheet to allow you to track the calls and effectiveness of your marketing campaigns.  Get a phone script or some kind of outline to guide you through your calls with potential sellers so you gather all the information you need in one call.  Don't expect to just mail out 250 post cards and get a deal out of it... you need to be consistent with your marketing efforts.  Mail the same list multiple times and continually try to improve your marketing.  Good luck!

@Kevin H.

There are a lot of factors to consider so it would be impossible for someone to tell you what you should do based on the information you have provided.  You need to understand how much cash you would gain from selling the property and also understand how much you are making each year by holding onto the property.  The only way to know is to fully understand the numbers associated with each option and make a decision based on your personal goals.

@David Bokman

Which areas of Port Richmond would you recommend?  I've often heard recommendations to stay East of Aramingo but I'm interested in your thoughts since you live in the area.