All Forum Posts by: Mike Pat

@Jaysen Medhurst Thanks for taking the time to write out a detailed summary.  Some of the things I should have added are that I'm not in college and am already pre-approved for that house (and others in that price range).  

- The house will be renting at $4k/month total and at $500/bed.

- It seems that conventional wouldn't work for me since it's a 3-unit and I would need to put down 20% vs. 3.5% for an FHA. I could be wrong and would def be open to other options to minimize out of pocket for a down payment.

- Your capex numbers are more realistic and I am totally going to use them as opposed to my more aggressive ones. 

- $400/Mo for utilities is simply for water/sewage and everything else is on the tenets. As for lawn care, snow removal, and pest control - I haven't accounted for that but will assume 2%/Mo.

If you have any input on the type of mortgage I'd def appreciate it. Thanks!

Hey,

Im looking at a 9BR/5BA in a college area in Philly and wanted to know if my numbers make sense. I will be using an FHA with 1.5% down and a 2.75% mortgage rate. The house is asking $395K but I would bid ~$383K based on 70% ARV. I would assume cosmetic costs and minor repairs are around $37K. I was wondering if that would be enough to appraise the house around $600K after fixing it up. Or is that an incredible stretch? Are my numbers reasonable or do I need to make adjustments? Thank you in advance.

House would be renting for $4K a month and after all expense cash flowing ~$160/mo. At the 5 year mark I would sell the house for ~$527K. (ARV selling plus Cash to close)

Looking for recommendations on contractors in central Philly. Looking to buy my first rental property and need someone trustworthy to help fix it up. Any input is appreciated. Thanks!

Thank you all! This has been extremely helpful!

@Michael Blakeney mainly looking around Temple University or South Philly not too far off South st. Thanks!

Edit: Washington Sq, Bella Vista, Southwest Center City.

Hi all,

I'm new to the Real Estate world and I plan on buying my first property.  My goal is to stop paying rent and obtain a multi-family in Philadelphia where I can rent out one or two units (I'm targeting a duplex or triplex).

My questions are twofold - I'm not too sure how to semi-accurately calculate rehab and I know in a competitive market a 70% ARV is hard to fine.

In the Philly area does anyone know a good rule of thumb for a complete gut such as ~$30/sqft. that I can use to know where to set a budget? And does anyone know if 70% ARV is feasible in Philly or should I aim for 75-80%? Thanks!