All Forum Posts by: Ryan McLaughlin

Sounds good, Suzanne! Just PM'd you details!

Hey Kevin, thanks for the feedback. Yeah, we plan on doing it again once we have another vacancy. That should be around the first week in February. 

I've got a pretty nice Keynote presentation and I was thinking I don't have to do it at the house. I could book a room and make it a happy hour. If you have some friends who would be into it, maybe I can coordinate around you guys. We could pick a date and I can start putting the next event together from there. Interested?

Hey everyone, I came here to advertise my free networking event this Saturday at my home in Manayunk but while I'm here I should also plug my business! I am an investor savvy RE agent serving Greater Philadelphia. I help buyers and sellers of all experience levels buy and sell investment properties. I have a special passion for helping first time buyers leverage their entrance into the market with creative house hacking strategies. And you don't have to be a first time buyer to utilize a low down payment - FHA, 203K or Homestyle loan product! I'd love to show you how.

Come by on Saturday and I'll show you how I used a 5% down payment for a Homestyle loan where I created $130K in equity and $2K in rental income at my primary residence - and no, I don't have roommates or live in an apartment. My rental unit pays my mortgage and then some. Yep, I get paid to live in my 1600 sqft house. 

Here's the copy for the event on Saturday:

What's up, Philly and BP?! My wife Jackie and I are hosting a house hacking networking event this Saturday from 11 am -12:30 pm and we'd love for you to join! 2 years ago we utilized a Homestyle renovation loan to gut renovate our Manayunk row house - adding a rental unit to our massive basement. With a 5% down payment, we've been able to add $130K in equity to our home. Not only that, but our rental brings in $2K+ monthly and we essentially get paid to live in the 1600 newly renovated sqft upstairs.

On Saturday we'll open up the books. The cash, the loan, the scope of work, the rental strategy, the highs, the lows, the blood, sweat, tears and, of course, the cash flow. Shoot me a message to RSVP and if you can't make it, drop me a line and we'll catch up another way. Cheers!

What's up, Philly and BP?! My wife Jackie and I are hosting a house hacking networking event this Saturday from 11 am -12:30 pm and we'd love for you to join! 2 years ago we utilized a Homestyle renovation loan to gut renovate our Manayunk row house - adding a rental unit to our massive basement. With about $37K, we've been able to add $130K in equity to our home. Not only that, but our rental brings in $2K+ monthly and we essentially get paid to live in the 1600 newly renovated sqft upstairs.

On Saturday we'll open up the books. The cash, the loan, the scope of work, the rental strategy, the highs, the lows, the blood, sweat, tears and, of course, the cash flow. Shoot me a message to RSVP and if you can't make it, drop me a line and we'll catch up another way. Cheers!

Thanks, Dan. That's why I put "overpaid" in quotes. As an apples-to-apples comp with it's existing use, you could say I paid too much at the time, but I saw the untapped potential and massive buildable equity. I secured the deal in '19 when it was a bit easier but my interest rate was also 4.75%. You can still get Homestyle loans closed and make great deals with them. I know a couple embarking on one now and they're going to do very well. 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $240,000
Cash invested: $37,000

My wife and I used a renovation loan on our first home. Our gut rehab added 2 full bathrooms and a short term rental unit in the basement. Creative house hacking at it's best! We've added $130K in equity to the home with $37K out of pocket. The rental pays $2000-$2250 on 30 minimum stays. PITI is $1680. We get paid around $400/ month to live in 1600 newly renovated sq ft upstairs. House hacking works! I can show you how to do it.

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

We couldn't find a multi family property in a neighborhood we wanted to live in that would also accommodate our growing family. Finally we decided to seek a SFH in a desirable area that would allow us to add a rental unit. It's not easy finding that in Philly, with its attached row houses (rare to find a rear egress for private entrance) and notoriously nasty basements, but we did and it has paid off massively.

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

This was a standard sale listed on the MLS. We overpaid for it at the time but we saw so much untapped potential in it that the equity we've created more than negates the $10-20K we "overpaid" at the time.

How did you finance this deal?

With a 5% down Homestyle loan. We refinanced out two years later, dropping PMI after adding $130K in equity with construction and the "Covid bump," dropping our payment from $2200 to $1680.

How did you add value to the deal?

We gutted it. Added Central Air, 2 bathrooms, kitchen, full rewire, a basement suite and and overhauled back yard/ property egress.

What was the outcome?

We get paid $400/ month to live above our rental unit. We utilize STR on 30 day minimums to strike a nice balance between revenue and management.

Lessons learned? Challenges?

I should have spent more to soundproof between units and separately meter the basement unit. It should be full self-sufficient as far HVAC and utilities. I was out of money at the time and it's going to cost me a lot more to go back and remedy when we move onto the next one, which will be very soon. 

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am an agent and I have a great team around me to knock projects like this out of the park.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $172,000
Cash invested: $45,000

Currently rehabbing this old smokers house. I know you've heard of popcorn ceilings but have you heard of popcorn WALLS?! Let's just say I probably got mesothelioma from this one. Should be on the market for 11/15 move in if I can get my rear in gear!

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

This one is a block from my house. It's only 890 sq ft and I like the simplicity it offers.

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

A neighbor received one of my postcards.

How did you finance this deal?

Conventional, 15% down.

How did you add value to the deal?

Full cosmetic rehab and hardcore "de-smoking."

What was the outcome?

Should hit the market in 2 weeks. Plenty of meat on the bone with multiple exit strategies.

Lessons learned? Challenges?

Hire it out. You're losing more income than you're saving doing it yourself.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $172,000
Cash invested: $37,000

Currently rehabbing this old smokers house. I know you've heard of popcorn ceilings but have you heard of popcorn WALLS?! Let's just say I probably got mesothelioma from this one. Should be on the market for 11/15 move in if I can get my *** in gear!

Hey Cole, I agree with earlier posters. Fairmount and Manayunk could be great options for you. Manayunk to CC in 25 minutes is doable. Fairmount is closer to CC and will be valued higher see better appreciation. That being said, both are very well established, vibrant areas and will more than satisfy your C+ criteria. 

My wife and I made the move from NYC 3 years ago with the exact same ambitions. We couldn't find a multi that we could afford in an area we liked so we added a rental unit to a single family in Manayunk. It's covering my whole mortgage and when I move out it should cash flow $2k+. I'm awaiting my zoning variance but things are looking good. 

This strategy is SO powerful and with your budget you will have a lot of options. I'd love to offer more insight if you'd like to connect sometime. You're on your way to making a great first step and most importantly, you'll love Philly.

Hey Jaime

My wife and I made the move from NYC about 3 years ago. We also came for the affordability but more importantly, the quality of life factor. 

Philly is vast and so is the investing landscape here. My wife and I couldn't find the right multi fam back then but ended up adding an income unit to a house in Manayunk. We love the neighborhood. It's covering our mortgage and we are on our way to making it a legal duplex.

There are a lot of different strategies for getting your feet wet here but for now I think you should just focus on getting your bearings. I came into Philly once a month for about a year before we moved. I realize that may be tough as a New Yorker, since you may not have a car. 

I'd love to tell you more about my experience or offer any advice. Shoot me a message sometime. I'm happy to help in any way I can.