All Forum Posts by: Ryan Oldenhage

@John D. is 100% correct, regardless whether you are using a PM or self managing, tenant screening and selection is crucial.  I would determine your tenant parameters before you even start and stick to them.  Don't bend from them just to get it filled.

Also, not sure if it was mentioned previously or if it's common knowledge, but I feel it's worth mentioning...make sure you figure in the cost of PM whether you're planning to use it or not.  This way you always have that option and it doesn't ruin your numbers.

@Eric DeVito, depends where the property is.  That is for Allentown city, not everything with an Allentown mailing address.  South Whitehall township uses an Allentown mailing address but is a different municipality than the city, for instance.  Best to contact the local municipality directly so you know first hand.  It's a simple phone call, explain what your intentions are, where the property is and ask what requirements there are for landlords.  I'm sure you'll find most will be more than happy to help a landlord that's is looking to follow the local guidelines.  I believe Allentown also has a packet specifically for Landlords that they will direct you to.

Also, there are different levels and qualities of property management.  You may be able to have a limited management service that satisfies the local requirement but is cost effective and allows you to retain some aspects of management.  I don't know firsthand, but something I would ask if that's the direction you want to go.

I agree with much of what @Account Closed has already mentioned.  I would also reach out to the municipality where the property is located and ask what requirements they have as well.  Every municipality is different and they all have their own way of doing things.  For example, Allentown specifically requires an owner or a manager of rental properties be located within 30 miles of the rental.  Neighboring cities don't have that requirement, so you'll want to make sure you know these things ahead of time.   Ask about trash/sewer bills, etc.  Allentown contracts trash pickup where Bethlehem has private companies to choose from.  Some require CO inspections, some don't.  Bottom line is what Mark said, do your research and know the requirements.  Best of luck and congrats on your first property.

@Trevarr Howard, definitely agree with what @Michael Bredthauer said.  I'm happy to send you a blank PAR Agreement of Sale form to review if you would like.  You would still need to add language for wholesaling but it's a starting point.  It's a good idea to become very familiar with the agreement you decide to use. Good luck

Excellent answers and advice, thank you everyone.

When you purchase an investment property that already has tenants in place, does the seller transfer the security deposits to the buyer as part of the sale or is it their responsibility to return the security deposits to the tenant and then the buyer collects new security deposits from the tenants once the property is transferred?

Hey Kris Spevak , I don't believe an LLC will qualify for an FHA loan and I believe there are requirements that you need to live in the property for a year with FHA. It would be best to check online for their requirements and/or speak with a lender. I think you'll find there are pros and cons for an LLC. I think it makes more sense once you have a track record with investments and landlording and have multiple properties. I also think it makes much more sense when you are purchasing with cash. If you have a successful track record with a few properties and good relationship with your bank, I think they would consider lending to your LLC as opposed to opening an LLC and asking for a loan with no track record. Banks don't WANT to foreclose on properties and without any track record, it's a risky lend from their viewpoint. I'm on the other side of the Lehigh Valley but would happy to connect sometime and discuss further. Great decision getting yourself set up and ready to invest.

Not in your area, but just wanted to chime in and say that's a brilliant idea.

Has anyone had any success and/or tips for purchasing bank owned property not listed for sale? I've targeted a few homes that are bank owned but not listed for sale yet. I've sent numerous letters to the asset managers for the bank on record and never received a response. I wasn't sure if anyone has had any luck doing this, has knowledge that they can't sell it directly and it's a waste of time, or maybe has a few pointers.

Welcome to BP Ryan!  I would thank your friend, you got some great advice (and your parents for your name while your at it).  I think the method you got it is important as well.  It wasn't someone telling you anything...it was "here, read this and start learning for yourself".  

You'll hear (or read) conflicting views of having your RE sales license as an investor...I personally find it invaluable and extremely convenient to compliment investing.  Feel free to reach out with any questions.  The exam is not a breeze, especially when learning all the terminology for the first time.  Good luck.