All Forum Posts by: Michael J Murphy Jr

I am an investor in PA with several PA LLC's. I am now looking at purchasing 2 properties (rental and flip) in MD. I am trying to figure out if I should obtain a LLC from MD or PA. Or from another state. I have always used PA by default in the past due to living here. I welcome any insight or recommendations. Yea, I know I should consult my accountant and attorney, but looking for practical recommendations as well from other investors. Thanks!

Looking for cost or contractor recommendations. I am looking at doing a conversion of an existing 6,000+ SF residential property (currently used as offices) and converting it to multi family (6-8 apartment). Current condition is pretty good. From a space planning side it works. I am trying to ballpark costs and what might be involved. Before getting into full design and costing, does anyone have any rule of thumb cost guidance to apply? I assume all new electric, plumbing, hvac. I assume I’ll need to add fire suppression. Not sure what will be required on fire separation. It’s in Lancaster County, PA.

I am not sure if recommending vendors is allowed in the forum. Please respond within the rules.

I have a short term rental in the Poconos of PA which has been renting well for a year now on AirBNB. Pocono Pines, PA to be specific.

I have a cleaner and HVAC contractor who have been doing a good job so far, but I feel I need a deeper bench. Ideally I would like to have a general purpose handyman available who can even check on the place for a small charge if I need or feel it should be done.

I would to do some additional work to the house such as paint and flooring, possibly cabinetry. I am a homebuilder so initially I wanted to doo the work with my team, but it just isn't enough work to justify the travel (2 hours). Also, I would like to be a little more hands off with respect to doing the actual work so I can focus on other investments.

If no recommendations of specific vendors, any help in pointing me where to find quality teams at fair prices would be helpful.

Anyone with experience in development of affordable rental housing in NJ?  

I am working on the potential development of a site in NJ.  The site has been identified as a site by the municipality to meet the Township's Fair Share obligation for affordable housing.  In the Fair Share settlement agreement the site is identified to accommodate 500 housing units with 100 units to be family rental units (affordable).  The remaining 400 units are to be market rate.  If this entire community is 100 units affordable and 400 market rate, equaling 20% affordable, it's in line with what I have seen in the past and general market acceptance. 

My issue lies in three alternative options:

1. If I were to make the 400 units "for sale" rather than rental, then the 100 affordable units would be 100% affordable.  What does that do from a valuation perspective?  Are they worth anything for just the land?  Can I sell just the land, without any tax credit financing tied to it?

2. If I decreased the total units from 500 down to 350 to satisfy some public concerns but kept the 100 affordable units, my percentage of affordable units jumps to almost 29%.  What does that do to land valuation?  I know if drives the total cost down, but does it substantially lower the per unit (market rate) valuation?  Would an apartment developer even be interested in something with that high of a percentage affordable?

3. If I did the 100% affordable units as rentals and did the balance 250-400 units as for sale, what would the exit be for the 100 units approved for affordable rental?  Are there groups looking to buy and develop that?

Thanks,

Mike