All Forum Posts by: Michael Glunk

I have some questions about the Allentown Pennsylvania area. Anyone invest in this area?

#Pennsylvania

#Allentown

Thanks,

Mike

I have some questions about the Wilkes Barre Pennsylvania area. Anyone invest in this area?

#Pennsylvania

#WilkesBarre

Thanks,

Mike

@Ryan Kuja

Re-reading my previous post, I meant to include one of the tips to see if it was the type of info you were looking for and would want to learn more about. But I was multi-tasking during a boring client call at my W-2 job and hence my vague post. Sorry about that.

In Recap and expand a bit...

I'm in a similar situation as you with investing in Kalamazoo. I've learned a lot by reaching out to some BP members and done my own due diligence. The Kalamazoo market offers a lot more interesting cash flow opportunities compared to my current market in Colorado. There can be some spotty areas, so good to hear you have a friend in Kalamazoo. I've got the same situation where I leverage a buddy from this area as my boots on the ground. 

One thing to think about are the terms of your rental leases. Most property managers align their leases on the same timing. This is driven by the local universities. A large majority of the turnover happens around the same time. Which is ironically now during the July/August time frame. Yes there are those out there that have leases that are not on this schedule. But after talking to numerous property managers and local investors, this was a point that was brought up again and again and something to consider.

Beyond this there are city certification requirements if you are in the City of Kalamazoo boundary and other historical building regulations if you purchase a historic home. More than happy to share more info if this is the type of stuff you are looking for.

Best,

Mike

Hey @Ryan Kuja,

Congratulations. I'm actually pretty much in the same boat as you in Kalamazoo, purchasing a new multi unit for the first time in this market. I'm based out of Evergreen, Colorado. The market here is pretty pricey. I'm someone who does a TON of research and have found out a few things based on conversations with locals. If interested, just shoot me a message.

Congratulations again!

Mike

@Mike D'Arrigo It was analysis paralysis...but I am over that now. Thank everyone for the feedback. I spoke with my agent and broker earlier today and am moving forward. Hopefully it works out, but if not, I'll find another. Thanks again!

Yes it is a SFR. @Mark ShaffarIt's fairly turn key. Of course we will see if the inspection turns anything up. 

The plan is to finance this property with 20% down and the buy a few others. I definitely agree with your points @Leandro Rodriguez

@Christian Brodin good question, just contacted the tax assessor today and found out I didn't have the correct Mill Rate. It's actual to my benefit. Rounding up the taxes after I purchase should be $2,800

Thanks everyone for the evaluation and for pointing out a lot of potential questions to consider!

Thanks @Steven Kleppin Based on initial inspection, it looks like there wouldn't be any work, minus some touch up paint on the exterior. I'm going to move forward to the next step. Thanks for the encouragement!

Thanks for the feedback Brent. @Brent Paul It's funny, I've run the numbers fowards and backward and even when I conservatively put in a higher vacancy rate or maintanance expense than anticipated, it still cash flows over $350+ per month. I'm just looking to overcome my #analysisparalysis so your thoughts are appreciated!

Hi Brandon,

I have a rental property 10 minutes off of I-70 just up in the mountains as you head west out of Denver in a town called Evergreen, CO. I'd be more than happy to participate. Evergreen is a beautiful town with a small lake and of course the Little Bear Saloon where Willy Nelson use to play when he lived here. My only caveat is that it's so beautiful here, you will want to move here.

Cheers,

Michael

@Brandon Turner

Hello All! I was hoping to get some thoughts on this deal that I am looking to buy and hold. Any thoughts are appreciated. 

Thanks,

Michael

Purchase Price: $120,000

Rent: $1,800 (It's currently under contract through July 2016)

Location: Walkable to 2 universities and the down town area

Closing Costs: $3,000 

Property Management: 10% I live out of state

Taxes: $3,400

Insurance: $1,000

Vacancy Rate: 5% (based on talking to multiple rental owners and mgt companies

Maintenance Costs: Personally I use $2,400 ($200 per month)

Thoughts?