All Forum Posts by: Lucas Pfaff

Hey @Austin Mullen,

Welcome to the neighborhood! Feel free to give me a shout anytime if you want some insight into these markets and some general recommendations . No Libs and Fishtown both offer a nice balance of lifestyle and return for a househack and are fairly similar. Port Richmond is another good option with lower entry costs and a different character.

Hey @Eli M.

I've seen a few different maps of the streams in Philadelphia. It seems like every few years someone brings this topic up when we have a flood or sink hole. Most recently, I remember it drew attention when a previously unknown (i.e. forgotten) stream was uncovered in the NE. Anyway, I've never seen a great overlay of the streams on current day streets/maps, but www.phillyh2o.org has some data that should be helpful.

http://www.phillyh2o.org/maps.htm

This looks really awesome guys! @David Ross great job on the design! Also, a big fan of your approach and mindset in tackling new construction for the first time. 

To echo what @Timothy Godfreysaid, I've used Woodcraft Cabinets in the past. If you're going down to Washington ave, don't bother, go a few blocks further south and straight to Woodcraft. They supply most of the places on Washington Ave anyway.

They are not the absolute best quality and the selection is minimal. There'e very little customization so you can't mix and match to get that exact style you're looking for, i.e. mocha stained shaker style, etc. Having said that, I haven't found anything priced even remotely close with the materials they use. They are solid wood and and structurally sound with soft close doors.

Now...while I've used these for my rentals in the past and I'll use them again in the future FOR MY RENTALS...I wouldn't feel comfortable installing these in a flip, at least not at the price points you're working in. It would feel a bit shady, like I was trying to put lipstick on a pig.

I've had some trouble with finishes coming off inside the drawers where packing tape was attached and pulled off. They're great cabinets for the money but they are a far cry from KraftMaid or something similar.

Hey @Nino Alfano, thanks for weighing in. 

Option 2 is similar to what I've done in the past in JV's, although as "Partner 2" I've also put my credit/liability on the line and therefore funded the majority of the acquisition. Anyway, I'm curious why it seems you give better terms to a new investor than a seasoned investor...Is it that you feel the active involvement has value equal to the rehab costs? Or perhaps with a new investor there is less willingness to be the sole capital partner?

Hey Kevin,

A couple thoughts...like @Account Closed said, you probably want to account for PM and CapEx up front. Assuming I did my sleuthing as well as I think I did, based on the current state of the property as well as the neighborhood, I would account for double the annual repairs you have listed.

On the other side of things, I think your rent estimates are fairly conservative and I'd think you could get $1,300+ for the 2BD units. This is my opinion and just something to consider rather than me encouraging you to change your projections. 

Lastly, based on the listing (without having spoken to anyone), I see no reason not to come in with a low offer, particularly as it's an estate sale, it's been listed a long time, and there haven't been any price drops. For what it's worth, with the information I have now, I'd probably come in around $250k and try to negotiate them down to ~$300k (don't forget, you make your money when you buy). Beforehand, I'd reach out to the listing agent and set up an appointment. After you've viewed the property and tightened up your rehab estimate...ask if they've received any offers and try to dig for whatever information he will share. The listing agent is likely a court assigned real estate agent and just wants to get the property sold. The family might jump on any offer they receive at this point.

Over the last few years, whenever I've felt unfocused or just needed a bit of a push I've watched and re-watched (or just listened to) this speech and video. It's been a good kick in the a$$ for me and I hope it can help drive someone else as well.

The video is a little less than 6 min and worth every second.

https://www.youtube.com/watch?v=lsSC2vx7zFQ&index=...

Hi Michael,

I've been with Keller Williams since 2010 and I'm currently a full-time Realtor representing others. Working with KW has been great for me and my current business and I have no current plans to move.

Having said that, should my level of personal investing increase, there are several "boutique" brokerages I would consider moving to. I'm happy to share some names if you'd like to reach out directly.

I like this area a lot for B&H, but that's not the question. 

Flips in that neighborhood could also be attractive, but there's a low ceiling for the ARV. Development is pushing further NE and you won't be the only person rehabbing in the neighborhood. Overall, this neighborhood has plenty of opportunity for a flip assuming you hold to your numbers and buy right. Stick to using nearby comps and not stretching for your value and you should be alright.

I'm not clear where these numbers came from but the Philadelphia numbers  can not possibly be an accurate representation of the market. At those rates it is more expensive to airbnb than to stay at the Ritz Carlton. 

My guess is you're using asking price rather than actual price. Additionally, the Pope was just in Philadelphia and rates are highly inflated. Many people tried to rent their apartments/homes for several thousand dollars per night. 

If it sounds too good to be true, it is.