All Forum Posts by: Sam C.

I buy a single family home, I expect a 12-15% cash on cash return. Since I will most likely have to cover all aspects of ownership: management, repairs, rehab, etc. Price/cost to market doesn't matter other than can I afford it. I buy a 30-+ unit property I am happy with a 4-6% cash on cash because I will do nothing other than oversee the running of the complex. Gross income has to be enough to pay for everything without me having to really do anything except regular inspections, hiring-firing and managing the money. When number of singles or 2-4 unit properties reach the benchmark I have for the 30+ number owned then I can accept 8-10% cash on cash income. At that point I am in the business full time and can always choose to make more money for myself by doing the things that I have to pay for. 

Sam

It comes down to two factors: distance and size. The farther you are from the property the more units it should be. 

APSCO Contracting. The best in Lehigh Valley when it comes to investment properties. Blocked from posting phone number. Go to arsrealestate.com and scroll to bottom of the page.

Victor,

A CO is a city requirement before a property can be sold. And required at settlement with cert that the work has been done and city has signed off or that buyer has agreed to take possession and do the work needed. What is negotiable is who does the work and value of work needed to bring property into compliance with CO. Unless you know what your looking at do not buy a property from someone that does not want to do a CO. The city can come in after the sale and saddle you with the repairs. 

Sam

I have never changed deeded entity/ownership after a loan is in place without the new entity revealed to the lender. And in my experience, ownership in a LLC does not avoid personal guarantee unless there is a long term relationship with the lender, lender being your primary banker for personal accounts, rents collected, savings, etc. and the property(s) has a very strong first position for the lender.

Good luck with your first property. There are some really good contractors out there that know how to do rehabs for flip or hold (they are different). All the one's I know will do an estimate for a fee and then credit you that back with a contract to perform the work. 

My experience has been that if you sell the property (changed deed ownership) the lender can call in the mortgage.

Your bigger issue is finding properties that make sense financially.

@Natalie Schanne Where are you getting the 98% occupancy #?

Did you close on the property yet? Still looking for a contractor?