All Forum Posts by: Ryan Harsche

@Gordon Ryan you would have the seller inform the unit that you want to occupy that they need to be out of the apartment within a certain time frame.  However, the seller does have to follow the lease.  So if the lease doesn't have a provision stating that they can end the lease with a certain amount of notice (generally 30-60 days), then you may not be able to kick the tenant out. 

@Michael Ablan nailed that one on the head. Even better than just doing a 3.5% down FHA, do a 3.5% down FHA 203K renovation loan. Buy a neighborhood eyesore, fix it up, and then move into one of the units and rent the other 3 units. This way you will have a house that requires minimal maintenance for the next 5-10 years and you can maximize your rents.

Andrew, I have a friend from Boston who invests in the area and invests down in Nashville.  If you would like me to make an intro, please shoot me a direct inbox message. 

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Phila.

Purchase price: $305,000
Cash invested: $25,000

Buy, Live and Hold. Bought it with an FHA loan and lived in one unit. Rented out the second unit. Now, both units are rented and the house is worth about 100K-125K more than the purchase price.

What made you interested in investing in this type of deal?

Easiest way to get into investing is to buy, live and then hold!

How did you find this deal and how did you negotiate it?

A real estate agent I was working with at the time found this on the MLS.

How did you finance this deal?

FHA financing.

How did you add value to the deal?

I did not put any work into the home. The value was added by buying in a really good area that was appreciating.

What was the outcome?

I still own it and plan to own it for many years to come.

Lessons learned? Challenges?

I do wish that I did a FHA 203K loan where I could have financed some cosmetic repairs. However, I almost think I'm better off not having the nicest rentals in the area. The Francisville area of Philadelphia is very saturated with new construction apartments that may not be affordable for some people. So I think by having a cheaper rental, I have less probability of vacancy.

You might be better off getting a HELOC that doesn't require you to take the funds out right away. Even though it's a low rate, the low rate doesn't mean a lot if you have to pay interest on money that you don't need. I'd rather have a higher rate and only pay when I have to pay.

I prefer Venmo.  I request the rent on a monthly basis.  Then you can go into the account and see who has paid and who hasn't.  If someone hasn't paid, you can send a reminder or make a phone call to make sure it gets paid.  The only issue I've had is there is a 2500$ cap per week I believe.