All Forum Posts by: Rafael Floresta

What do you mean by state taxes? Income taxes on his personal return or did you meant to say property taxes? They have different foreclosure processes.

Property taxes goes for foreclosure. In Philadelphia, a property is considered tax delinquent nine months after the city's March 31 payment deadline passes. Delinquent parcels are assessed interest and fees, which over time can grow larger than the principal. By law, properties can be sold at public auction as quickly as nine months after they become delinquent. In practice, that rarely happens, and many properties are allowed to linger on the delinquency rolls for decades.

You can get a Property Tax Payment Plan. Contact the Revenue Department at (215) 686-6442 for assistance.

I dont think a state/federal tax lien can foreclosure, but it will make harder to get clear title.

For the co-owner, it wont be good to have that. I am not sure if property taxes are reported to credit agencies, but I would assume it does.

The two side by side will require separate loans, since they are separate parcels. If you are going with a portfolio loan, all bets are off and the bank is the one to decide how things are structured.

Welcome! What areas are you looking at investing? At first when I read "B & H Investor"  my mind did not read buy and hold, it read B&H as the B&H photo store in NY. 

I thought "Man, that was probably a great investment, that store sells a massive amount of gear!". :)

The roof price is actually high. 15x45 leads me to think it is a flat roof, and I usually pay between 1600-2000 for a new flat roof.  

@Nicholas Kurowski I am a investor and a licensed real estate agent in NJ. I am working on getting my PA license. 

Philly has lots of distressed properties, and I would try to find something you could get a head start on equity. That way, in a year you would be able to go get a HELOC and tap into your equity to fund your next deal.

If you want some help, lets grab a coffee and discuss the details of your situation. 

Ron, there are several places that refinance with a commercial loan on rental properties. The rates are higher, and sometimes the terms are shorter.

I am looking to refi a rental (just finish rehab, tenants moved in last week). The bank will mortgage it for 5.25% 30y. All based on the rental income, and they dont look at my debt to income ratio. 

I buy mostly in Delaware County, PA, and I am fairly confident the bank would lend in your area. PM me if you want the contact of the mortage person.

Bump.

I am looking into buying a specific property in Philadelphia. It is going for auction. 

I ordered the title search, but it hasnt come back yet. I am very familiar with the property, and it is a reverse mortgage and the person is deceased. 

The property taxes are behind, as per taxes arent escrowed in reverse mortgages. 

I know in Delaware County, PA the taxes would be paid first then the remaining cash goes to the mortgage that is foreclosing.

Assuming everything else is good with title, will the taxes be paid from the proceeds from the sale? Or am I on the line for the property taxes after the bid.

Also,

Markets are very regional and different. Even two different neighborhoods in the same town will have different numbers. 

I would personally pass on that deal. 

You really must look into the HOA budget and see how much reserves they have. If their expense is close to their income, when it comes time to redo the roof, they will hit you with an special assessment (extra payment) to fund it. On top of that, you have no say on how, when the work will be done. Part of owning real estate is being on the driver side, making decisions, finding a better deal for capital expenses, and if HOA will go with 3 offers and pick the cheapest, you are opening up for a big risk.

Also, you didnt budget for property management. You should always do.

Here is a analysis of a deal that isnt the greatest but we bought it:

https://www.dropbox.com/sh/5ym3bs2eyj372sw/AACKo9g1JwtDjXonPlNXT85ta?dl=0

Roxborough is a nice area. I wouldnt get too caught with the cap rates at this point, You can just look at straight up cashflow, specially if you intent on living in the property. 

I invest in South Philly and DelCo, and 100 per door is not a good cashflow for lower income properties (rents below 1.5k), but it can be ok if you are going with FHA 3.5% and pay PMI. With 100 dollars of cashflow, I would be worried about anything breaking in the first 5 years, putting you in a bad spot.

Dont forget to calculate your PMI, and add about 200 bucks monthly for Capital Expenses and repairs.

The BP calculators are a great way to analyse your deal. I strongly recommend. 

I would stay away from the pool, or budget someone to come to maintain the pool from the start. If you choose to do it for a while, you keep that extra cash, but you should not corner yourself to HAVE to maintain yourself. Same goes for Property management. 

I am local'ish, if you need anything, feel free to ask.

Mark, 

The @ tags aren't that great sometimes. I dont think it notified people. At least I didn't get it, but I got a notification that the post was updated. 

I don't go to DIG. Mostly because DIG is way too big. I seldomly see the same people and in the end I don't develop relationships. Also DIG has a lot more upsell, in my opinion. It is a very personal opinion. DIG is great for a lot of people.