All Forum Posts by: Shawn Connors

Hey BP!

I am eyeing up a multi unit in a great location and I am trying to underwrite it and would love some feedback. I will be trying to apply the BRRR strategy for this property. Here are the details.

7 Units, 7585 sq ft, 7 (1 bed and 1 bath units) on 1.14 acres.  There is potential to add 3 more 1 bed and 1 bath units on the third floor and all of the units need updating and could generate more rent.  Here is the financial breakdown...

Purchase Price- $495,000 (Listed on the MLS)

Rent:

Unit #1:  $575

Unit #2:  $575

Unit #3:  $330

Unit #4:  $575

Unit #5:  $575

Unit #6:  $625

Unit #7:  $750

Total Rents- $48,060/yr

_______________________________________________________________________________________________________________________________________________

Expenses:

Electric- $2400

Sewer and Water- $2100

Maintenance- $2254

Insurance- $3319

Other Expenses- $4000

Taxes- $8390

Total Expenses- $14,073

________________________________________________________________________________________________________________________________________________

NOI- $25,597

Purchase Cap Rate at Asking Price- 5%

Typical Cap Rate for Area-  8%-9%

Rehab Estimate (to update all the units and build 3 more) - $150,000-$175,000

Now I am trying to figure out what I would offer and how I could get the cash flow up in order to have the property appraise for much higher than it would now.  Please let me know if anyone could help or if you would need any more information.  Thanks

Hey BP!

I wanted to reach out and offer my services to all any and all investors in the Greater Philadelphia area.  I am a licensed real estate agent and work primarily with investors helping them find flips and selling them or helping them find rentals.  I offer multiple investor promotions that are geared towards helping my clients save money.  If you would like to talk about how we can work together please feel free to reach out to me anytime, thanks!

@Alan Zee

Delco is a good area to invest in especially for cash flow.  The Collingdale area and the surrounding towns are not up and coming but they are great for rentals.  Yes, the taxes are very high, but in the coming year they will all be reassessed.  Check out this article.

http://www.delcotimes.com/article/DC/20170328/NEWS...

Let me know if you would like to discuss further.

Hey BP!!!!

****INVESTOR ALERT****
I have a 9 unit package deal for sale in Pottstown, Pa. All units are fully occupied and cash flowing. All units have been well maintained and are currently run by a property manager. SERIOUS BUYERS ONLY!!! 3 duplexes and 1 triplex.

3xx Jefferson Ave, Pottstown, Pa 19464 3 units 2228 sq ft 1st Floor- 2 beds and 1 bath- $595/month 1st Floor - 1 bed and 1 bath- $650/month 2nd Floor- 1 bed and 1 bath- $600/month

3x King St, Pottstown, Pa 19464 2 units 2472 sq ft 1st Floor- 2 beds and 1 bath- $725/month 2nd Floor- 1 bed with potential for a second bed if loft is finished- $630/month

6x N Charlotte St, Pottstown, Pa 19464 2 units 2466 sq ft 1st Floor- 2 beds and 1 bath- $750/month 2nd Floor- 3 beds and 1 bath- $895/month

4xx Chestnut St, Pottstown, Pa 19464 2 units 2683 sq ft Front- 3 beds and 2 baths- $1000/month Rear- 2 beds and 1 bath- $725/month

Purchase Price- $460,000 O.B.O.
Gross Rents- $78,840/year or $6570/month
Monthly Expenses- $2969 or $35,622./year
NOI- $43,218
Cap Rate- 9.4%

Call, text or email Shawn for more information and to set up a view.
**SERIOUS BUYERS ONLY**
**MUST HAVE PROOF OF FUNDS**
**NO RENT TO OWN**

**NO FINANCING OFFERED**

https://drive.google.com/open?id=0B8GT9qT98LG2MThHS0F3U045ZGs

@Russell Brazil Great advice! I will have to try that. Do you think there is a possibility I could get in trouble with my MLS if I did that?

@Mike Cumbie With our MLS it has to be off the market for 30 days before the DOM will reset. So if we did that we would essentially be missing out on prime time, but it may be a good choice. @Bob Okenwa I know and that is what is really affecting this deal.  I had it listed at $514,999 and had a full price offer within 3 days and that buyer dropped out at the last minute.  Then we had it under contract for $480,000 and the same thing happened.  It is now listed at $489,995 and we haven't had much action.

@Bob Okenwa He is not being unreasonable.  There are two big drawback to this home which is the layout (it is a traditional colonial and on the main floor there are 5 different types of flooring) and the kitchen is dated.  Even still, in this area and at the price it is at it should have sold by now.  We considered taking it off and re listing but now he feels the time has past for that and does not want to take it off.  I will PM a link to the listing and maybe you can see something I do not.

Hey BP,

I am having a difficult time with one of my listings.  The property has been on the market now for 122 days.  Within those 112 days, the property was under contract twice.  The first buyer backed out after the radon level came in high even though the seller had it mitigated.  The second buyer backed out because of the inspection report and the fact that my seller would not give them more of a credit.  So now I am stuck with this listing and mind you, this house is in one of the hottest markets in my area! I, as well as the sellers, are very irritated and disappointed.  I have tried dropping the price multiple times and they don't want to go any lower than where it is at right now.  I am looking for some advice as to what I can possibly do to get this house sold!!!  Thanks 

Legally zoned and fully rented duplex in Drexel Hill, Pa. This property has been well maintained throughout the years and has never had a problem renting. Both units are 1 bed and 1 bath. There is a basement and each unit is separately metered. The seller has kept up on his rental license for each unit also. No major repairs needed, only minor fixes. First floor tenant will be moving at the end of the month.

Purchase Price- $74,000

Gross Rents- $15,300 or $1275/month ($675-1st Floor; $600- Second Floor) Rents are BMV

Estimated Monthly Expenses- $232 (Water, Insurance, Trash & Sewer)

Taxes- $4953 or $412.74/month

Total Estimated Monthly Expenses- $7737

NOI- $7563

Cap Rate- 10.2%

Comps:

3214 Albemarle Ave, Drexel Hill, PA 19026 1640 sq ft, 2 units, 2 beds and 1 bath each, $1400/month rent- Sold for 125k

3814 Ann St, Drexel Hill, PA 19026 1720 sq ft, 2 units, 2 beds and 1 bath each, $1250/month rent- Sold for 130k

3848 Plumstead Ave, Drexel Hill, PA 19026 1638 sq ft, 2 bes and 1 bath each, Sold for 125k

*Call, text or email me for more info and to set up a time to view the property

*Serious BUYERS only

*NO RENT TO OWN!!!!!!!!

https://drive.google.com/open?id=0B8GT9qT98LG2LWJ1TTUxd1JyRm8

Welcome to BP!  My partners and I do a lot of business in Delco so if you ever need any help feel free to reach out to me