All Forum Posts by: Ricardo S.

all my tenants paid on time thank god!

@Jacob Lapp

You were able to get a 5% down conventional owner occupied loan on a triplex? I thought that was only for SFR.

Yea, i'm aware of the law. 2 of the 5 are related.  

Thanks everyone for the support. Hopefully I will be posting another success story soon.

btw if you want the name of the mortgage company I used just send me a PM. I won't post it in the thead for obvious reasons.

@Jared Forman

Thank you! Planning on getting another this summer.

@Jake Washburn'

The property is correctly zoned RM1. I have a rental license and my property is legal. Its south of market street. My tenants are very diverse and ages between 23-48. My next property will be an airbnb actually. This one I wanted consistent and reliable income. Also there are nightmare stories for every scenario you just have to do your due diligence. Which I did.

@matt 

@Matt Hew

send me a PM

The first unit is actually two floors.  Send me a PM ill send you pictures

@William Keeler

Thank you. I was determined to make this deal work and maximize my returns

@Matt P.

The property was gut renovated when I purchased it. It was basically someone else's flip. So not much repairs will be needed in the short term and so far so good. 

@Bradford Castleberry

I sent you a PM

proximity to nyc

low taxes 

cashflow 

landlord friendly 

I closed on this property back in August 2019. This post was long overdue so here you go;

Last year I was determined to get my first property so after doing some research and calling over 35 banks and mortgage companies finally I found a mortgage company that was willing to work with me and my credit score. The thing is FHA min credit requirement is 580 but most lenders have an overlay requirement of at least 620 for 3.5% down. But the company I found through a mortgage broker, my agent referred me to charged me 1 point to get the loan. I hope this information helps someone. Bad credit means you pay extra in life. Keep in mind I was 26 with zero debt making 75k a year. My credit score was due to 3 charge offs back in 2015. At the time of writing this all three were disputed and removed from my credit report after using a credit repair company. Now onto the deal:

Duplex in West Philadelphia:

Price $319,000 

offered $325,000 with 5% seller assist. It was accepted.

Unit 1: 6bed/3baths 

rent by the room house hack: Room Tenants paid First, Last and security deposit to move in (3x rent) month to month

room A $700

room B $400

room C $400

room D $550

room E I stay here

room F $550

All utilities included in rent:  [ Electric, GAS, Water/Sewer, Trash, Wifi, Monthly Cleaning Service for common areas] average $550 per month so far.

Unit 2: 4bed/2 bath

$1400 per month. Tenant pays own utilities except: water/sewer & trash. First and security deposit to move in ( 2x rent) 1 yr lease

Gross rents: $4,000 

Mortgage payment: $2180.65 

Monthly Expenses:  $550

Reserves $150 

Net Cashflow: $1,119.35

Rent payments are collected using Cozy. I will move out soon and rent room E for $350 per month.

P.S I closed on August 30th 2019. The house was fully rented by October 24th 2019.

The 1st of the month is my new favorite day :)