All Forum Posts by: Robert Gorra

As an investor and contractor I'm glad Zillow said Philly is loosing steam and hope people listen because it will only mean better deals for me and my clients, less competition driving up prices.  BTW, we are seeing quite the contrary to the Zillow report.  

For the out-of-state investors, how do you manage and monitor your rehab work from long distance without traveling to the site on a regular basis?

Regular Facetime sessions?

Hiring project overseers?

Ask for daily pictures and reports?

Investors, what do you think is the best way?

First off, I'm not sure why the banks call it a "re" finance when you currently don't have financing on a property because you bought with cash.  Maybe someone else knows...  

I've basically gotten the "we don't want it" answer when asking the big banks about refinancing a rental property that's worth under $100,000 due to the fact that it's too much work and/or too costly for them to do it.  In my limited research on the topic, either I can bundle multiple properties as a portfolio or use a smaller local bank who will do it.  I've yet to find a local bank in or near Philadelphia that will, but truthfully, it hasn't been high on my priority list.  Also, you can't do it until you have a tenant at least 6 months into a 12 month lease.  So if you're looking to "refinance" your recently acquired rental, and use that money to buy the next one, hold your horses.  

Does anyone know a bank that will refi smaller investment homes with cash out?

Hi Joe, I can help. I’m an investor and contractor in Philly. 
let’s connect, I’ll let you know my thoughts about these areas. 
- Rob

Hi Lisa,

A quitclaim deed means that the grantor makes no statement, or even imply that he/she even owns the property, which is why you must get clear title using a good title agency.  Whatever rights the grantor, the person you're likely buying the property from, possesses at the time the deed is delivered are conveyed to the grantee, you.  Make sure they are conveying fee simple interest.  

Quitclaim literally means, the grantor is renouncing all possession, right, or interest in the property.  

ie, they quit their claim to the property.  

Delaware county.  Strong rental markets, lower home values, much lower transfer taxes.

I personally think the market is overinflated in the city of Philadelphia.

My financial numbers when analyzing a single family home to buy, repair, and rent is the following:

Purchase Price to rent ratio (cap rate): 20%+

All-In Cost to rent ratio: 17.5%+

Monthly Net Income After Debt: $500.00

You can still find these, but typically on the outskirts of Philadelphia.  Bonus, much lower transfer taxes!  

You shouldn’t have an issue renting it out, but definitely bring it to the attention of the broker/agent and if you have a friendly title company that you know, run it by them. Title guys might even flag it if they are super thorough. Not in a bad way necessarily. The seller may have converted it without getting the zoning changed. If the city catches wind you may run into an issue.

Honestly the safest thing to do would be to handle things now before closing so you’re not stuck holding the bag after. 
if you need anything repair-wise, just hit me up. We have a couple great crews. 
If you do close before changing zoning I can help you navigate. 

Warren Buffet says the economy is ripe for rentals to build wealth via passive income. When I’m not closing a deal, I’m repairing a home.  More importantly, I’m helping others with their repairs. Hit me up if you need demo, painting, bathroom, kitchen, etc. 

I’m reliable and local. 
licensed and insured. 
All estimates done on-site and free. 

Great posts.  Thanks guys!