All Forum Posts by: Mike B.

Update: construction isn't finished yet (about 2 weeks to go) and I have prospective tenants already! Only catch: they want to rent for February (1200/month). Can't wait to cash out/refi. 1st time doing this in short period of time. Do you normally wait till tenants are moved in? Or can you do it before they move in, with proof of lease?

Anthony Boreland you can buy SFH and MFH, most need some work if not moderate rehab in west passyunk triangle area. I just bought there and am doing rehab now. It's a diverse neighborhood, more restaurants are opening up and hipsters are already moved in lol. It's the area between Snyder Ave to Oregon Ave between 18-24th street (give or take). When you look on google maps you'll see a literal "triangle" of the main streets. That's the sweet spot. Some streets are tree lined and the closer to Oregon Ave you go that area is girard estates. Your value will be in purchasing a property on or near Snyder Ave. PM me if you have questions

Hi all,

Wanted to share my new (and second) project I've been working on since October 1st. As a background, I'm a general handyman and my father in law is a retired contractor.  I previously renovated my duplex (which I live in) and was looking for the next project (took me over a year to finally get one!), so here it is!  I'm the GC for the project, doing most of the work myself and with my father in law.  I did sub out for HVAC and some other minor things that weren't worth my time and/or were affordable (e.g. pressure washing and re-pointing front of building).

Located near 21st/Snyder (19145), it's a 3 bed/1 bath (1050 sq ft) home, with cemented basement and decent sized back yard (concrete slab). I found the home on Hubzu.com in September, quickly looked at it, estimated $15K in Reno to rent it out (mid class finishes) and I won the bid, closing on September 30th without a hitch.  I initially estimated 30 days of reno, bbbuuttt (read on)...

October 1st: we hit the ground running, gutting the kitchen, partial demo of bathroom floor (tossed vanity and toilet, all else was good) and changed out locks and installed new front window which was previously smashed out.  That's when we found out copper pipes were stolen out of basement, drains to bathroom installed incorrectly not allowing water to drain properly, boiler (gas furnace) was shot, and electrical appeared new in basement however knob and tube was discovered in the ceiling.  Great right?! Yeahhhhh... oh and the roof needed to be replaced.

With that in mind, and checking comps, I decided to switch gears and make this a modern, high-end rental, updating everything to have a maintenance free, cash flowing property which I'll rent out for the next few years while the home appreciates in value. And if I had to, I could easily sell it given the updated appearance (hence the change in gears)

The financials:

All in, at $90K (cash purchase).  hubzu.com closing.. seller (bank) paid some liens and utilities thankfully!

NEW Reno Estimate=$25K (high end finishes, SS appliances, quartz countertops, install new HVAC system, replace/update plumbing and electrical).. and 60 days to finish work

ARV= $175K range (rent=$1200/month, but with cash out refi, i'll pocket ~$450/month)

Here's some photos/updates thus far (after ~30 days of work):

Front, power washed with new window installed on day 1 (they came back next day to do pointing) 

DARK LR/DR combo, somewhat closed off --> NOW OPENED into kitchen with new drywall installed (in kitchen, pictured).  Original kitchen was from the 1950s, could not be saved by any means.. so out with the old and in the with new.  Of note, in 2nd pic.. window wasn't opened, but it's VERY light and bright in there and will be better when new paint is done. 

Original kitchen was from the 1950s, could not be saved by any means.. so out with the old and in the with new!  Plan is New kitchen layout (new rear door installed, waiting on new window) with white shaker cabs, SS appliance package, quartz countertops.  

Bathroom.. ripped out old vanity, toilet, and 1.5" of tile flooring.  Will install all new there (tub and surrounding tile is good).  Top of tile on walls is pink so will epoxy paint those bright white. 

Master Bedroom getting a new huge closet (previously there was only a very small bookcase sized closet with shelves).  And don't worry.. I'm changing the door to swing the other way entering the room (gives it a bigger feeling when entering)

Basement: dirty and scary.. broom swept the whole thing, added basic lighting with bright white CFL bulbs and voila! Still need to toss the sink (its old/bad) and install new washer/dryer, UGL drylock the walls (just to be safe) and call it a day.  HVAC already installed

What's to come over the next 2 weeks: 

• Install remaining new vinyl replacement windows throughout (double hung, Low-E) 
• Install new front door with transom 
• Install new tile flooring in kitchen/bathroom
• Install/complete kitchen (cabinets, appliances, etc)
• Paint entire home modern colors (light grey with high gloss white trim)
• Install new 3/4" Shaw white oak hardwood flooring (picked up for only $1.75/ft on craigslist.. leftovers from another job!  Only putting downstairs.. carpet upstairs)
• New modern lighting fixtures throughout home
• New brushed nickle hardware (doors, etc) installed throughout

My biggest advice: Adapt to the situation, set the new goals and stick with it. Being a thrifty shopper, I found a lot of deals (with patience and some extra work) on craigslist, ebay, etc.. saved me thousands in materials in the long run!)

DON'T GIVE UP!  It literally took me over a year to find this deal (I was outbid on 6 other properties) and the wait was well worth it.  Do your research (due diligence), purchase a good investment, and it will pay you dividends!

I think that's about it for now.. will keep you posted with updates.  Feedback/questions welcome!

As an update I closed today on my property. Slight hiccup with paperwork on title company's end but other then that all went smoothly and demo starts tomorrow! Always exciting. Of note I was able to close in 20 days (which is the option I selected on hubzu while bidding). Nice and quick cash close.

Jason Moran you're limiting yourself by not utilizing leverage. You should of course do this safely. I did the BRRR method and cash out refi to purchase my next property (left 30%down on my place). You could also do a HELOC, etc as you noted.

GAB construction in Philly and NJ. They do everything

Erick Burgos matt and I were curious if you can comment on this. people mention having some hick-ups with the title process. Did you have liens against your property, and did you use their title company or your own? I had researched my property before bidding and didn't see any but curious if you ran into this and if so, how did you deal with it. Thanks

I just used their site recently and won a home near west passyunk Ave area. In process of closing now, finalized end of this month. I haven't had any hiccups yet. This home, unlike yours, was not advertised for sale or settled. It was foreclosed on previously and already vacant for a few months it appears.

Thanks! Zachary Paul I guess my concern with that area is even though it's rented, will the property itself appraise higher. More importantly with appreciation I'm thinking it would take another 10 years before the neighborhood really started to improve. The greys ferry shopping mall is getting better now with a fresh grocer going in, but in the neighborhoods not much commercial is around there

Anyone investing / have properties in Grays Ferry? I'm looking into SFH rentals given the price of most properties. I know this isn't an "A or B" neighborhood, but wanted to hear feedback from folks who have rentals their currently. What would you consider the area? C?

I'm looking at a property currently on the market that with a little fix up and renting out for $900-1000/month, would net me 10-11% COC-ROI and my cap rate would be around 12-13%.

Also what would you deem the 'better' areas of Grays Ferry to invest in?

Any advice/recs would be appreciated.  Thanks!