All Forum Posts by: Michael Enriquez

Hey @Christopher Phillips, interpreting the language from the selling guide how could the $10k spent on materials and labor be counted as part of the initial investment? 

I was always under the impression that delayed financing wouldn't allow a cash-out to exceed the initial investment, closing and finance charges. So even if a property appraised at $100k and you were all in for $65k initially, that's all you could pull out. Any additional investment would remain in the deal. No?

@Ron Fu I have a duplex that is zoned RSA5 (single family) but had a variance filed in 1949 to allow use as a two family so I've been grandfathered in. Shouldn't be any different for you being that you've got the RM1 zoning which makes it all that much easier since no zoning board appeal will be required. 

With RM1 zoning you just need to file a "Use Registration Permit" form. There's no need to go in front of the ZBA for a variance. 

http://www.phila.gov/li/Pages/Zoning.aspx

You may already be grandfathered in, check the Zoning Archive to see if one of the previous owners filed a use registration permit outlining use as a two family:

http://www.phila.gov/zoningarchive/

@Tavaris Little How's it going bro? The question you ask is one we've all faced at one point in time. One thing I will say is that if you do purchase a single family, don't let it max you out. While real estate is an asset, a primary residence is a current liability. 

Unless you expect your income to rise exponentially in the forthcoming years, maxing out on a single family could hinder your ability to partake in REI down the line whereas a multifamily may actually strengthen your borrowing ability and allow you to scale your business if purchased correctly.

@Steve Babiak that is some really great info. Thank you!

Truly inspiring! I love bullet #5 under "Deal Process". 

@Jocelyn Borg It was negotiated in the contract to have the seller turn over the units. He painted and cleaned them out. As far as finding the flooring contractor, I pulled up about 20 phone numbers on google, scheduled about 10 to come and give me a bid (6 showed up), from there I sort have felt them out. I didn't choose the cheapest guy, but overall I was happy with the results. 

In regards to education, I just had a burning desire to learn the ins and outs of real estate in general. It started before I purchased my primary residence in 2015. I managed to really take it to another level when I discovered BP; late spring 2016. The podcasts and book recommendations within the podcasts are really great. I've never read so much until I contemplated investing and now I can't put these books down. 

@Kevin Paulk I used ValueGuard down in Philly. It was a great experience, Dave was very thorough with his explaination of everything, I learned a lot and it'll certainly help me vet properties in the future. 

@Newton Mignott When I first took a trip down to Philly I scheduled about 7 showings with each respective listing agent to vet them out. I chose my agent based on the fact that he didn't appear bothered to show up at a showing for a $40k house and that he is an investor as well. My lender I chose actually has a loan officer active on these forums and I thought it would be best to build a relationship with a local bank so that by the time I need to seek a portfolio product they know me and my finances. As far as an attorney, I didn't retain one. Pennsylvania is a title close state so everything goes through a title company. 

@Tina Ricard What do you feel that you're missing?

@Account Closed Nice numbers! Non-owner occupied rates are always about .75-1% greater than those for owner occupants. It's just the cost of doing business unfortunately. 

@Tina Ricard Accounting for the following:

Mortgage 

Taxes 

Insurance 

Property Management 

CapEx

Vacancy

Repairs

Water

Trash

Snow Budget 

Rental License Fees

About $250 total. I may have over budgeted in some categories, but even so my cash on cash ROI is in the high 13's. Capitalization Rate just a hair under 10.