All Forum Posts by: Neerav Patel

@Kathy Henley Thank you for your help and insight. 

We ended up meeting for accepting cashier check deposit. We used zoom for tenant orientation and used eversign for e-signing lease. Worked out perfectly

As Mr Brandon Turner mentioned in his book on "Managing Rental Property", we always require our tenants to pay deposit and first month's rent before or during lease signing via confirmed payment such as demand draft or cashiers check.

Due to pandemic and to comply with our social distancing guidelines, we are planning to do e-sign this time and not meet if possible. We would like to stay away from paypal, venmo etc since that creates problem during unfortunate events of eviction process and tenants can basically do small payment and delay whole process.

We always turned to wise community of Biggerpockets in times of confusion and this is one of those types. If someone can recommend different way that they try to collect deposit, we will greatly appreciate that.

Thank you all for your time.

Lots of good information. Thank you all for your help.

Question- I have Airbnbs and rental properties. I have have 3 Airbnbs(part of my personal home and 2 properties) and 2 are under my personal name while 1 is under LLC(owned by me). Other 2 are long term rentals and 1 is under my name while other is under LLC(owned by me).

When I try to go apply for EIDL, do I make 2 application? one for sole proprietorship and other is for LLC? On very first page , it asks , are you a business or sole proprietor? Both applies in my case, and not sure what to choose.

Any help will be appreciated.

Thank you and stay safe

@Benedict A Hubbert Thanks a lot for show number

@Rick Wade Thank you , appreciate your response 

@Will Barnard Appreciate your insights. I agree it is not a rule and your insight about equating 1% to good deal cannot be more true  but as I mentioned it stops many people for doing a deal and hence wanted to share this story. 

All of our properties are in Philadelphia suburb in a very friendly areas. Our main criteria is if we don't see ourselves living in that property after repairs, we don't buy it.  It has been almost 2+ year and 1 turnover (late post) and it has been consistently outperforming other rentals in that community and we are getting 12-15% cash on cash return.

@Brett Goldsmith Glad to see these numbers. Are these properties LA based? 

I was hearing a lot from our meetups and from other sources that 1% deals are in past, just wanted to show that it is definitely hard but not impossible 

Investment Info:

Single-family residence buy & hold investment in Eagleville.

Purchase price: $139,000

This was our second foreclosure property. It had a standing water in basement hence was not selling.
It was a townhouse with full basement 2 bedroom, 1.5 bath and 1472 sqft.
Bank pushed closing dates at-least 7-8 times(took almost 4 months) and on one day all of the sudden they mentioned if we don't close it today, they are putting it back on market. We immediately ran from work and took half day of leave and finally closed that deal.

What made you interested in investing in this type of deal?

We have already seen power of BRRR investing via example of our own home, so we wanted to repeat that success. We already knew that area because we have put offer on some townhomes in same community.

How did you find this deal and how did you negotiate it?

Price was 153k , we negotiated 144k but selling agent was pain to deal with and all of the sudden they said no. After couple of days , they dropped to 143k( our gain but what a mismanagement). We put an offer and got it under contract with mortgage and inspection contingency.Even-though we hadn't purchased property yet , we needed mortgage. So with our money and sweat , we installed sump pump but bank refused to do mortgage since they saw signs of water damage.So we renegotiated to 139k

How did you finance this deal?

We tried our best to get bank finance but did not wanted to go to hard money route since we already had HELOC plus extra cost for hard money, so we used HELOC money that we have got from our primary home.

How did you add value to the deal?

Took care of basement water problem and finished it too. Because of bad roof, some studs were rotten, so had to change roof and those studs. Bathroom renovation, along with some other minor items and painting of home.

What was the outcome?

Rehab was roughly around 23k, we did many of work ourselves. Learned the hard way that some things are better left to expert.
We refinance property with HELOC and apprised for 210k and got our money back.
Currently we are renting out this place for $1650/month.

Lessons learned? Challenges?

So even-though people say 1% rule does not exists in our area, I will say try and try until you get results you want.
Main challenge was confusion and frustration from listing agent and not knowing enough about renovation and getting scared with problems which turned out to be very easy tasks.
Plus also leaned the hard way that some things are better left to experts. We did some plumbing work and that leaked multiple times , so had to call professional and angry tenants.

@Dennis Rogov same here Dennis. Were you able to find that podcast number? I did listen to that but its been a while, so just wanted to re-listen

@Josh Detweiler Sounds like a really good lead. We are also local in area and wanted to move from single family to multifamily investing.

Let us know if you are interested in partnering up on this or other deals around Philly or just wanted to get in touch.