All Forum Posts by: Sheldon Zimmerman

Thank you @Account Closed for the referral. We would be honored to help you, Jack. Give me a call and let's get you a great cash-flowing property. 

Hey Joe, 

So there is a lot to that question. Because a seller could ask for a lot of different things. But happy to chat with you about it.

Correct, Jon's comment here is exactly correct. HELOCs are good for BRRRR or flips and short-term financing.

Hey Sam, Absolutely can use a HELCO. It is in PA considered a cash offer. Just because it comes from a HELCO does not make it less cash than actual cash in your bank. The lien is what is protecting that amount. So personally what I have done is use that HELCO to buy several properties and it makes it so nice to do those BRRRR deals or flips. Then you pay off the HELCO and find another one rather than just sitting on that other loan. Personally highly recommend doing the HELCO if you find a bank that is willing to do that.

Congrats Samantha, that is exciting that you have 2 so far. So there is a lot of angles here in these questions. However, this is exactly how Property Management companies start. haha. If you plan on just doing your properties then I would say you can keep doing it as you are now because they are your properties. However, if there is a chance that you will be managing friends and family rentals then I would highly recommend setting up an actual PM LLC. And get it registered with the local laws for real estate. But please check with local laws and attorneys for advice for your state. As far as keeping track of your stuff, I would ask your accountant if you need to keep track of your miles. So states and other areas may not need to and you can just take a general deduction. But again your accountants would know better than me.

As far as separating bank accounts. It depends on what structure you have for each property. Are they might be different or the same as the setup of LLC. Personally, I think it is very very important to think about the future in all cases here and KEEP IT SIMPLE. Because as you scale make one-offs and different accounts it will get confusing fast. So keeping things simple and standard is important as you scale more and more.

Hi Kobey, 

I would be happy to connect and talk about this market!!!

@Eric Greenberg haha, sorry I got that mixed up. Trenton NJ does not Philly. 

So I can't speak into Indiana. However, Pennsylvania is broken out per area. So for example PA does not have any restrictions. But the city of Philadelphia would. So it is really by region or city that would determine this. I'm guessing Indiana would be the same. So you may want to check the city or area you are in if they would have any rental restrictions. Now on a human level, giving them a heads up it's increasing by 70% might be worth it(that is what the 30 days notice is for too). Because I'm going to take a guess here and assume the tenant will move out if you increase it that much. It might be worth doing an upgrade to the home so they feel like they are getting something out of the increase. But either way, I would do the same and try and get that rent up to the market value as quickly as possible. Best of luck. Hopefully, this was helpful. 

Well, this can really depend on the Landlord/tenant law is in your area. I can talk you through a few things if it is in PA. But if you are in another area then I probably can't help. It all depends on the local laws. If you don't mind me asking what area? 

This is the tough part when evaluating a deal if you are not seeing comps. Option #1- Ask a real estate agent to pull comps and see if they can find something maybe you are not seeing. Option #2 hire an appraiser to give you some comps. Option #3 Do an evaluation on the property and see what the rate of return will be as an investment. See what the value would be at a 6% cap rate, a 7% cap rate, and an 8% cap rate, and then determine the value of the property. I hope this helps.