All Forum Posts by: Neil Stark

I'd love to hear some thoughts about investing in PA coal country. Is it worth pursuing lower priced housing and rehabbing for a buy and hold in the pursuit of better cash-flow, or is it just too risky? I realize that the difference between a few city blocks can make a difference, so local knowledge is welcome! With high competition in the Lehigh Valley, I'm considering branching out a bit. I see the potential for growth in these areas in the next two decades in particular, especially with a recent large state grant from Shapiro to create jobs in the semi-conductor/specialty gasses field.

 Thank you for the insight Matthew, great reply!

What are some of your favorite areas for house flipping in the Greater Allentown area and what specific challenges (other than lack of inventory) are you facing in the 2024 Market?

Quote from @Theresa Harris:

Quote from @Robert S.:

Quote from @Theresa Harris:

Quote from @Robert S.:

can you please check these pictures and advice? The builder is saying that most of the water enter through the window and not the crack to protect themselves I guess. How to prove that the water actually entered through the foundation crack? What are your thoughts with this size of a crack?Thanks everyone @John Coulter

@John Coulter

 Some of those joists end in mid-air-why?  They should be going all the way down to the ground.  I've never seen a window framed that way. Normally there is a joist running along the outside.

My knowledge on framing is very limited. The restoration company had to cut the drywall out and remove some of the studs. Can you please tell me or possibly highlight and show me which joists are you referring to?

 The photo on the top left (it is also visible in other photos)-see the vertical studs?  Those should go all the way down to the base plate.  There should be a stud on the left side of that window that goes to the ground.  Google 'framing a window' and there will be lots of photos of how the studs in the walls should look-none of them should be floating in the air.

 The framing does not support the window, the concrete foundation does. The framing is for the sheetrock and spacing for wiring/boxes. The framing does not have to be built to support a window that is being supported by a concrete foundation, just need something to screw the drywall to. Back to your REAL problem, the standing water in your yard! It needs to be dealt with!

Quote from @Robert S.:

can you please check these pictures and advice? The builder is saying that most of the water enter through the window and not the crack to protect themselves I guess. How to prove that the water actually entered through the foundation crack? What are your thoughts with this size of a crack?Thanks everyone @John Coulter

@John Coulter

Water will make its way through porous concrete by hydraulic pressure alone. You can see that the concrete is wet all around the crack, not just running out of it. The water table is high and the water will find its way in somewhere. Foundations are designed to support homes, not hold back water (maybe to some small degree). That crack is not a structural concern. The REAL problem is the standing water in the yard. IMO you will continue to have a problem until you remedy the water in the yard with a drainage system.  A French Drain system with a catch basin and pump should work if the grading will not allow natural drainage.

Quote from @Robert S.:

My basement has flooded, possibly due to standing water in one of the window wells. There is water pooling up under the mulch next to the window well on the side of the house, and I can see water seeping into the window well. The house is a year old, and I am out of warranty. Is it normal to see standing water under the side of the yard under the mulch? Also, I cannot step into the backyard as it is very muddy. The builder has corrected grading issues twice before where there was standing water in my backyard, but it looks like the issue was never resolved. How did the water get into my basement? Could there be a crack somewhere? I am really hoping someone could help me with this, as I never slept after this happened and am worried. We put a lot of effort into finishing the basement. The carpets are damaged as well. I have a restoration company coming tomorrow, but for now, I have put a sump pump in to drain the water out. I have attached a video link for reference. Thank you, guys. Standing water 

That standing water has nowhere to go. I think your best and maybe only solution is to put in a french drain across the yard with a large catch basin at the low point. Use a quality, high volume submersible pump for the basin. This assumes you're not violating any ordnances (check with municipality). 

You would be amazed how much water flows through 6" perforated pipe. Run  some 220V wiring in pvc underground (licensed electrician) to power a good pump if you have space/amperage reserve in your electrical panel. 220V requires less current to run than a 120V for the same power, so it's more efficient.

This guy has a lot of good videos on diy yard drainage systems.

Not much you can do if their accounts are set to private. Between Linkedin, FB, Youtube, Instagram, etc....you should find something, though. Our tenant on FB posted nothing but positive, feel good family photos, uplifting quotes, and stuff like that. 
We got a good vibe from her in general and her references checked out.
I would just avoid people who complain about their job, life, and other stuff online all the time (like me, lol). 

Kodie,

Sorry for the delay! 

We found a tenant that stayed a year and then moved to Colorado. Our current tenant has been there a year and a half and couldn't be happier!

I use turbo-tenant and screen tenants through social media as well.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $332,000
Cash invested: $32,000

House-hacking currently in a fully renovated duplex on the outskirts of quiet Bowmanstown. Bought this property with a 3.5% FHA mortgage. Paid 12K to get the driveway paved with ample parking and turn-around space. Tenants paying 1650/mo for 2 bed unit, and we will rent the 3 bed out for 1750 when we move. Estimated cashflow is $600 ($300/unit) after expenses.

https://www.zillow.com/homedetails/607-Fireline-Rd-Palmerton-PA-18071/93562619_zpid/

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

Reduced housing payment. Reduced competition in putting in offers on multi-family in current market.

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

Zillow. Negotiated through agent.

How did you finance this deal?

FHA

How did you add value to the deal?

Paved Driveway. Had to fix a plumbing leak and replace subflooring in kitchen.

What was the outcome?

Currently rented.

Lessons learned? Challenges?

Always check workmanship and permitting when buying renovated.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Investment Friendly Lender

Michael Polizzi
Mid-Atlantic Funding
570-499-4448